If someone were to ask me to summarize what I know about personal finance into a few simple points, perhaps this is how I would do it. In my simple world, there is basically golden triangle of three parts, each aspect of equal importance.
- Start Budgeting
- Insure Yourself
- Save & Invest
When the question is posed to me on how to optimize saving or investing, my answer usually draws a blank face. “Huh? Budgeting? What’s the link?”
As the cliche saying goes, “If you fail to plan, you plan to fail”.
Budgeting comes first for me due to a variety of reasons. Personally, it helps me to create and more importantly, continuously maintain a sense of awareness about my financial situation. Many people have the capability and capacity to save and invest. Even then, I feel that budgeting still has its value.
True Story
I started budgeting when I was ...
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