Budget Them Dollars

Ms.Elynor Moss made a great point on her blog about assets and liabilities. Assets are things that appreciate in value like a house, land and bonds. Liabilities are things you have to pay like creditors, bills and other expenses. To obtain a rich life you have to learn how to budget your money. For example, take your adjusted monthly salary and write it down on a piece of paper. The next step is to write down all of your expenses such as: rent, utilities, food and wants. After you do that add your expenses up and subtract that from your monthly salary, and then you will recieve your net income. Net income is your actually salary after expense. To stop living paycheck from paycheck, you will have to be disciplined. For example, buying breakfast and lunch from fastfood chains is an example poor money managment. If you look at your balance statement and see a list of names like McDonalds and other fastfood chains they are emptying your pockets, five and ten dollars can add up weekly, and before you know it you broke and you have to wait until next pay period. What I have notice in this society is that we have complexes. The economy put value into things that are irrelevant. Another example is that we think if you take the bus you are poor; that is bunch of bull because it is cost effective , and it is a mode of transportation. There are things we call inferior good and normal goods. Inferior goods are things we buy when our income is low; we would buy things like ramen noodles. Normal goods are things we would like to buy more of like prime cut steaks. In a nutshell, don't feed into the stereotypes of the American society; if you have confidence within yourself you wouldn't worry about what people think of you. So, take the bus and eat ramen noodles, if you know where you are going in life the other things doesn't matter. You have to set goals in life and meet them. If you want to save two thousand dollars, do it. Don't put 2,000 dollars in your savings and start deducting from it soon as you put it in you account. Rich people have a plan that's why they are rich. You have to live frugally to obtain overflowing wealth. Don't invest in wants all the time; invest in needs.