“When you ask, What do I want my money to do for me? you’re deciding how you’ll use your money to get closer to the life you want.”Jesse Mecham
You Need A Budget | Jesse Mecham
We’ve all heard of budgeting. For those without the self discipline to pay themselves first (invest first, then pay bills), budgeting can be a crucial skill to break out of the poverty cycle, get free from debt traps and generally from just stop living pay check to paycheck,
Mecham founded YNAB (You Need a Budget), an online software budgeting tool which has helped thousands of people to successfully create a budget and get on top of their finances. The book is based on the same principles, where he outlines the basic steps to prioritise your financial goals, allocate money, create a safety net and reduce your financial worries.
Jesse gives four simple tricks to help master finances;
- Give every dollar a job – budget!
- Embrace your True expenses – for example make sure you factor your yearly bills into your monthly budget.
- Roll with the punches – be flexible with lifes changes
- Age your money – when it is at least a month old, you’ve broken the paycheck to paycheck cycle!
A great book for those just starting on the path to financial independence and learning their first few baby steps on responsible money management. Those with great savings rates and decent investments feel free to skip right past this one.