Happy fridayfeeling everyone.
Today I thought i would talk MONEY and share my latest insights. It is not really a fridayfeeling topic but very appropriate as it is the end of the month. So the fact is I am a 20 something year old who has only properly learnt how to budget. YIKES! In the cold light of day that is a scary fact considering I knew how to do maths from age 4!
My darling mother has taught me plenty of life skills
How to dress- Classic styles rules
How to survive the workplace- Do not be a push over and work hard
How to find a great guy- They all have faults, find one with the least faults
How to have a successful relationship- Compromise, smile and nod when he is talking minor rubbish, scream when he is talking major rubbish
Friendships- Good ones are hard to find, be kind, be there and have a laugh
If I think about what budget advice she has given I would say it is not really a lot (sorry dearest mummy if you are reading this and you actually did give me budget advice. It was most probably one of those moments were I switched off).
Despite not having motherly wisdom on budgets I think I have finally cracked it. Hoooorah! Here are my tips so far
A Prada Bag (substitute for any designer brand of your choice) is NOT an investment.
So as a basic I have stopped thinking of any designer purchase as an investment. I wiki’d what investment is and in finance terms
‘Investment is putting something with expectation of gain, usually over a long term’.
I very much doubt my DVF tops, designer bags, lovely Cartier Watch, any Tiffany Jewellery I have will gain in value. I think accepting that is a good start, so when I decide to spend X on something I know and will not trick myself that is an investment. Please note this does not mean I will not ever buy designer things. My money pot above is going towards my big birthday treat which would be something outrageously grand because I would be old and have told myself I am worth it!
Things that happen automatically, actually happen. Direct debit was the best invention ever. So by setting a direct debt to pay my savings account first it gets done. It is no longer the case that i spend first and save what is left.
INPUT AND OUTPUT
“Annual income twenty pounds, annual expenditure nineteen pounds nineteen shillings and six pence, result happiness. Annual income twenty pounds, expenditure twenty pounds and six, result misery” Mr Micawber. Charles Dickens
I absolutely love this quote because it is spot on. You need to have an idea of what is coming in and what is going out. The total left at the end of the month should not be MINUS. If it is getting a spreadsheet and figuring out what comes in and what goes out would be a good starting point.
So tomorrow is a new month which means a new budget. If you have not got one already this may be the perfect time to get started.
Hope everyone has a fabulous weekend.
Live, love and learn.
Ps. London Girl is back first hump day of the month. Whoooo.