Recently, I’ve started diving more seriously into budgeting, tracking finances, and learning more about money. What I really think is needed, though is something dealing with all of our emotional and mental tangles over money. How one foolish choice can mess up your finances later when you are making worse choices that could have been avoided. How you can know all the basics, but still waste money, etc.
Financial Books I’ve Read or Skimmed
Financial Peace. Always a great start although I don’t agree with everything.
I know I read or skimmed something by Larry Burkett. I would always start with Ramsey and Burkett.
The Behavior Gap. The title is GREAT. I have all the information, but I don’t put it into practice. I was hoping for some sort of helpful psychological discussion. This book is quite silly and shallow and repetitive.
Save Money by Wanting Less. Yeah, this requires some self-talking.
Items to cut from your expenses.
This blogger talks about his journey to financial “independence” (truly a misnomer if you think about it) via passive income (an interesting concept).
I’m not really in a place in which I need a strict line-item budget (not sure I will ever be with the way I want to budget shop), but I still like researching it. However, I think everyone ought to track their expenses whether or not they use that to formulate a budget. You can also use it to see where you’ve spent too much money and where you can cut down money.
Ages ago, I came across a blog post (I feel like I linked it here, maybe?) in which the author discussed how she tracked her expenses for a year. I decided to do that. I’ve been working on how to make the most of that information.
I made a chart in Excel (I think you can use Google Sheets for this) with the headings item, date, category, and amount (if the item is an expense put “-” in front) and with a total of the amount at the bottom. I then made a pivot chart with “categories” as row labels and “amount” as values (sum of). I used the sort filter to remove the “income” category and made a pie chart with percentages to show how I spent my money visually.
Guy on FIRE
Why is financial independence a misnomer?
1) I’m contrary, over-think, and like splitting hairs.
2) Financial independence is based on investing which involves business run by specific people reliant on the purchasing power and choices of people as whole.
3) Yes, I realize I could by that logic say such a thing as independence doesn’t exist. It is relative to other things, etc. . . see #1.