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That is the moment where we get emotionally involved, we may use any mathematical formula, but in the end we will need to confront and stick on our emotions.
The beginning is surely the budgeting write down all your assets and liabilities, get a stricht sum, that will wrap your head aroung your spending habits.
In betwensen there are a lot of emotio with whom we have to confront, apart the human side of it, the cut off part it is pretty straight forward and mathematical, unfortunately nobody really respect those self imposed limits.
Addictions
Consider not be in an addiction circle and by clinical addiction we do not stop at illegal drugs, cigarettes and booze. Anything can make us addicted, by the ICD-10 it is also possible to be addicted to a person.
What all the drug addicts miss is a society to accept them, given that they have been taking the wrong decision themselves, it is very possible that they have been led to the decision by their environment, and at the moment it is not even perceptible, if not only as an unconscious thought.
So individuating an addiction and release its costs it surely is a way to decrease future debt.
What are you putting money into?
Most of us do not know where their money ends up, sometimes it is a trust in the referral that allows us to "say goodbye" to our money. This is a big mistake, a bit part of the risk-assessment is the knowledge of what you are investing into. Nobody would pay a lot of money and time into a school that will not repay you in somehow, knowledge is anyway another thing, mostly you get repaid in personal satisfaction. Otherwise nobody would ever read a book.
So in this case there are two possible understandable behavior behind the complex attitude of investment:
1. Budget the investment, so that you will not cry at loss (do not spend more than what you can lose)
2. Budget so that you have money on the side in case of emergency (and that money will not get invested.
Cult your health
The best investment is in your health, and I am not talking about paying a big fat health insurance, rahter work it preventively.
And here we reconnect to the discipline chapter, your body is comprises different systems that work together to make you work on a daily basis, it allows you to walk long distances, carry big load of weight, think your math problem to transport bananas through the vallies and rivers and makes you communicate with other individuals to successfully end the day in a success.
It was noted first by the ancient greeks and the imperial romans, that the mind and body are closely related and affect one another. So do keep up your study, but get your ass up and run on a daily basis.
This all activity game, is not oriented to win you social approval through a social media platform... (ndr. Thinking of the Other Person as Toxic makes us Toxic, better explained what I mean by that), but it will mainly higher the performance of thinking and smart problem solving (ndr. there are also other medical and psychiatrich studies showing it).
So the body training release the mental stress, but is it necessary all this mental stress? Truth is that the work-week time are quite of a subjective thing, it is standardised for the production purpose (not to have to get more people in, not to need to pay more or less per periods), but still does not match, what we define bearable. So test yourself and take the decision it may change your efficacy at work and social life. Work by preventing.
Take care and appreciate what you have
It is impressive just to look at those trash containers down the road, how do people take care of their stuff now a days. We can litterally find anything on the side of the road now a days, and usually it has still quite a good value. This makes me think of how people treat their stuff these days. Whether it’s their car, their home, their clothes, their cell phone, or just about anything else that can be bought, people just don’t seem to value their stuff enough to take care of it and make it last.
If you are looking for ways to reduce your cost of living, and you are making monthly debt payments on anything at all, then getting out of debt should be at the top of your list... Rule number one of "anything", get out of debt.
So avoid having to exchange what still gut function is an important idea, on the other hand carefully analyse any short term expenses you are about to make, in order to avoid a long term debt, is the prevention mind to a better living, also considering that just 50 years ago our parents did the same automatically.
Do you have a functional kitchen? Use it!
Quite the italian idea of it, well it is a very relaxing experience, that can become a nice break of the routine if you like. Make it an habit and the wallet will thank you.
And if you are interested to know, food budgeting works better when you prepare a list of things to buy, rather than looking at a menu at the restaurant.
Learn how to consume leftovers and learn about Dumpster Diving...
Try to make food that will not end up in the dumpster, consider on the opposite to resque perfectly good food to end up in piles of garbage. The Marketing industry sells are food the perfect red apples, that are known to be posionouss in the "snow white" cartoon of Disney, reality is never that far. You never know what toxic products they use for vegetables and fruits (especially in USA, whatever is FDA approved), over that the bio products, are more expensive and sometimes make it for a shorter time in the stores. So they end up in containers, luckily enough there are some good people that think it otherwise and rescue still precious food (that by law cannot be sold anymore) from the garbage.
Sell your car, buy your freedom
Do you find yourself often into traffic jam and see those people on the side walking overtake you, and maybe you meet them later in the store where you were heading to? Or did you ever though, where the hell am I parking when I get there? Am I paying a considerably absurd amount of money into my transportation, that could actually grow to a capital to pay for University of your kids...
There are an increadible amount of DVDs, Youtube channel or books of people riding the bike throughout half globe and in any wather condition. De facto there are possibility to change and shower in all the kliniks I ever worked, I just always had to actively question where that was, the next changing room might be in the next door right!
Stop upgrading your phone
If you just take great care of the phone you are currently using, it should last you at least 4 or 5 years before it decides to stop working. And with phone prices reaching upwards of 1,000 euros, this little tip could save you, big time. As long as you have an external pendrive, a camera system and the 2-steps autenthication system...
Discipline
You have worked your budget to the bone and you know you are debt free and you have some excess money that would rotten in your bank account (and lose its value by inflation every x-year), so you want to put it to work.
You already notice how important was the risk assessment part, you will not underestimate the value of education, because it is not finished yet. There is an important factor into your earning and spending that is purely psychological. You have done your research, now you need to activate the resources that make it work. Which can be anything that may work with you. By me is planing and regular pay outs.
I "statistify" my monthly payouts and make my "investment cake".
Every long term has a short term asterisk, as much as every investment cake has its comas. My investment cake is indicative and stable, for the side of the payouts, so that I can know in advance, how much I can spend monthly, but it is plastic on its rigidity.
Example I will spend 14% on my ETFs every month but considering I have a 25% rule on the ETFs I am currently investing on, I have the indication to increase a 5% payout on that one/ones ETFs that lost about 5% of their value in that month. With it I am not modifying the outflow from my pockets, but I ensure an "optimization" of my investments.
For my Long Term P2P eventually I will end up in the Zone of "automatisation" (at about 1 year from now) by monthly returns, but since I decided not to use the 20% of my incoming, it will go to cumulate with the paybacks in the portfolio and it will maximize its earning. As I explained in the article "The Slow Growing Beast".
I consider Cryptocurrencies, as well as comodities and Stock-market a short term investments, although my character into investments in any sort of market is quite long term (Staking, Depositing, investment in long term oriented projects), the short term nature of this category is it's liquidity nature. At any time in the day I can call this liquidity back into my pocket or even pay with it directly, and this is an extreme worst case scenario case, because if you bare in mind I already have 10% in my pocket immobilized only for emergency cases.
What interest us is though the 46% of the total cake. This money goes cover all expenses in life as for taxes, medical insurance and eventually restaurants once in a while.
This big chunk is actually the "luxus chunk", for as much I can cook at home, walk rather than drive my car, DIY a present more than just buy something, I will be liquidity-wise richer and richer, which is not something I need to be honest, but it is for me the insurance that I can offer a coffee at the lunch break in the clinic to all my collegues, I can always buy a bus/train/fly ticket back home. Hence I won myself the possibility to improve to max my interpersonal relationship, which is for me the healthiest ... so yes education is the key, study what you do, plan it... get enough sleep to be ready in the day.
Do not imitate what you have been offering by the social media
To me money does not buy happiness or freedom, good interpersonal connection does. So I sold my TV when I moved out of home at 19, and I never needed it anymore. For the first time after 10 years I own a sofa.
My YouTube Channel (you can now tip me through BRAVE browser): https://www.youtube.com/channel/UC9W2UIhWWFUPjK6WbIg11FQ
