How does money fit in with your life? Is it the thing that frees you, or the thing that ties you down?
Money. You’ve heard of it, right? It’s the thing they say makes the world go around. It’s (probably) the reason that you work, and it’s what you exchange for the things you need, and want, in life.
So, what’s the point of ignoring it?
I believe that money should be thought about more often. It should be talked about, especially with your loved ones.
If you hide from your money, your situation will never improve. If you don’t think about what you spend, it will disappear without you having any idea where it went. And when you truly need it, you will not have it.
Thinking about your money
Do you have any idea what you spend every month? How much do you owe in debt?
Australia currently has one of the highest personal debt levels in the world. Additionally, 1 in 3 households are living paycheck to paycheck. If an emergency came up today and you had to fly out to family in Melbourne, how would you pay? If you lost your job tomorrow, how long would your money last?
Be honest with yourself about your money situation. How much do you have, and how much do you owe? If you’re not happy with it, ask yourself what you are going to do about it. You may not be able to alter your earning easily, but your spending can be changed today.
If you don’t know what you spend every month, now is the best time to start tracking it. Do you eat out on your lunch break? Do you buy something just because it’s ‘on sale’? What’s your monthly spend on coffee, or beer?
The smallest changes can mean you save the money for the things in life that really matter. As in yesterday’s post, compare the things you are spending your money on, to the things that matter most to you.
I spent around $10 a day on my work-day lunches. This alone cost me $2600 per year! When I worked that out, it was almost one month of my pay at the time. I could have been saving nearly 8% of my yearly income, simply by bringing food from home.
A couple of years ago, my nephew had his coming-of-age ceremony in Burma. If it had been a few years earlier, we might not have been able to afford the tickets. We might have let our nephew down, and my wife and I would have regretted the decision for quite some time. And I might console her with a text, but after I finished my KFC.