Budgeting your life is all about prioritizing your money. Although you might really want that dreamy Coach handbag, it’s over $500. There goes food, fun and not to mention rent for the month. No one wants to be limited by their bank account, but let’s face it, it’s not bottomless. The sooner you accept your limits, the sooner you can set a goal and reach it.
Farnoosh Torabi, author of “You’re so Money,” embraces her personal limits and lives within the boundaries of it on the daily so that she can splurge on that fabulous getaway every once and a while. “It’s about spending your time and money on the very things and events that make you feel happiest and most fulfilled,” said Farnoosh in an interview.
“The hierarchy is all about discovering what’s important to you—and what you can’t live without.” -Farnoosh Torabi on budgeting your income
CJo discusses being financially fit by targeting your unnecessary money suckers, and eliminating them. Question yourself: Do you really need a car, or can you get by with a bike and bus schedule? How much money are you spending on eating out? Do you really need cable or can you get by with the occasional Redbox rental?
According to the author of The Good Life on a Budget(similar blog name to mine eh?), sometimes you have to spend a little “fun money” to stay sane. But, it’s important to remember to prioritize obvious things like paying rent before the cable bill, or paying your electricity before a new shirt.
- About Farnoosh Torabi (bargaineering.com)
- Home Budget: Stop Living Paycheck to Paycheck (quicken.intuit.com)
- Track Spending, Save Money, Live Better (debtconsolidationusa.com)
- A Summary of Farnoosh Torabi’s The Importance of Financial Literacy Education – by Eileen Santos (conference2009.typepad.com)
- 12 tricks to save money (rappler.com)