subject: Managing your Finances [print this page] Managing your Finances Managing your Finances
Managing your financial outlook is a challenging task specially during these times of crisis. Many people are asking, "How are we supposed to manage our budgets, when we don't have anything to budget in the first place?". That may not be an entirely accurate statement. Remember, managing a budget is not simply about managing the money that comes in. It's also about managing the money that comes out. Personal finance is personal responsibility. If you lost your job and are struggling to make ends meet, then consider downsizing your expenses to the barest minimum possible. Cutting down on luxuries and even daily needs is possible. Most of the time, people say that they've done everything that they could to minimize their expenses. So, instead of driving to work using the BMW, they'd use that gas guzzling SUV. Obviously, that is not cutting down on expenses.
Perhaps, the most extreme way of exemplifying cost cutting is by observing the lives of people in third world countries. Life is very different and priorities are drastically dissimilar. In Vietnam for example, people go to their places of work using bicycles. It's actually a good idea since not only do they save on gasoline, they also protect the environment. If you own a company, you might consider saving on costs by outsourcing. With the advent of Internet telephony and communication, it's now possible to have a receptionist or even an accountant somewhere in India. Your choice of food is also critical. With the high obesity rate in America, you'd begin to wonder how much of that budget is actually spent on food. Compare that with a delicious mongo meal in the Philippines, which only costs a dollar. It could feed four to five members of your family and at the same time give them their daily requirement for protein.
That's not to say that you should live like a person who is living in a third world country. Having a broader outlook broadens your horizons, so that you'll have more options in deciding. The more options you have, the better leverage that you get in managing your personal finance.
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