Managing your financial prospects is a challenging task especially during this crisis. Many people ask, “How can we manage our budget, when we don’t have anything for the budget in the first place?” That might not be a completely accurate statement. Remember, manage the budget is not just about managing the money entering. It’s also about managing money out. Personal finance is personal responsibility. If you lose a job and struggle to meet the needs, then consider downsizing your expenses to the minimum barest possible. Reducing luxury and even everyday needs is possible. Most of the time, people say that they have done everything they can to minimize their expenses. So, instead of driving to work using BMW, they will use the Gas Guzzling SUV. Obviously, it doesn’t reduce costs.
Maybe, the most extreme way to exemplify cutting costs is to observe the lives of people in third world countries. Life is very different and the priorities are drastically different. In Vietnam, for example, people go to work they use bicycles. This is actually a good idea because not only they save gasoline, they also protect the environment. If you have a company, you can consider saving costs with outsourcing. With the advent of internet and communication telephones, it is now possible to have a receptionist or even an accountant somewhere in India. Your food choices are also very important. With a high level of obesity in America, you will start wondering how much budget it is really spent on food. Compare with delicious Mongo food in the Philippines, which only needs dollar fees. It can feed four to five of your family members and at the same time give them their daily needs for protein.
It’s not to say that you have to live like someone who lives in a third world country. It has a broader view of expanding your horizons, so you will have more options in deciding. The more options you have, the better the leverage you get in managing your personal finances.
