What They Didn't Teach You In School About Money by Omar Johnson

Author:Omar Johnson [Johnson, Omar]
Language: eng
Format: azw3
Publisher: Make Profits Easy LLC
Published: 2013-10-15T16:00:00+00:00

Develop a budgeting regimen

How much do you earn every week? Every month? If you work hourly and your hours vary from week to week, you should take the average for the past twelve months and use that as your guide.

Next, what are all of your living or necessary expenses? This would be your rent or mortgage, taxes, utilities, food, car payment, commuting expenses, and so on.

Whatever is left over is your surplus.

What many people make a mistake on is that they don’t track their money going out very well. You go to the store and see a new DVD movie you want to see, so you throw it in your cart because you just got paid and, well, ‘It’s only $16.95.’ You justify it as being a minor expense in comparison to your rent, car payment, and all the other things you have to pay. Besides, you worked hard all week, so why can’t you just enjoy a movie if you want to?

There’s nothing wrong with that, but you should certainly have a budget in place for it. Set a fair amount each month for ‘entertainment.’ This could be going to the movies or renting one at home. It could also include going to a ball game.

Once you develop a budget, you need to stick to it. This will show you where you tend to lose money every month.

That $16.95 movie might not seem like much, but when you add up all of the other miscellaneous expenses that you had during the month, including eating out at McDonald’s, Panera Bread, or even Chili’s, you could be shocked at how much you’re spending on them. Small purchases don’t seem like much at the time, but they can build quickly.

Once you set your budget, you’ll begin to be able to see where you ‘waste’ money, where it’s being thrown away, and you’ll begin to see what you can do to manage it better.

Managing money is about respecting it. If you don’t respect money, you don’t respect the time that you put in to earning it. If you don’t respect the time you put into earning money, then you can’t value yourself. If you don’t value yourself, then you’re not worth more when it comes to money.

It’s a circle and it’s important to begin understanding that the circle needs to be cared for at all stages and when you do, you’ll begin to have more money.

Now that you’ve built your budget, if you find that you simply don’t have anything left at the end of the month, look to where you might be able to cut back. If your car payment is $350 a month, for example, and the insurance on it is $140, that’s almost $500 a month!

Get rid of it. Purchase a used car for $3,000 (that’s six months right there) and you can drive that around for two or three years, or more. Get a car that goes 35 miles per gallon instead of the 20 per gallon you have now.

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