Financial Wisdom: Living Within Your Means Without Sacrificing Happiness

1
Financial Wisdom Living Within Your Means
Without Sacrificing Happiness
Chaitanya Kumari Writes informational articles on
common ethics, cultivating wisdom, being
sensible, hindhu dharma to all along with others
on finance, health and cultivating wisdom.
2
Wisdom is when you realize that being greedy is
not a good quality you should adhere to. Being
financially wise will help you become stable in
the same aspect of your life. Learn to spend only
on necessary items and curtail your whims to
spend on anything you want. Refrain from buying
items you find in your neighbors or friends
house. Being envious of others achievements or
belongings only leads to spending more than what
you earn. Always remember that you have
responsibilities and therefore it is not a good
idea to spend on unnecessary products. Avoiding
Debt Getting into debt because you were greedy
and wanted something desperately can ruin your
financial stability. Buying a big car when you
already have a small one is simply a matter of
greed and not a necessity. A small car can also
be useful to you particularly if you have a small
family or you are living alone. Borrowing money
from the bank on a loan or from someone else just
because you want to fulfill your dream of having
a big car is foolishness. It will lead you to a
monetary burden that will be a big problem ahead,
3

• How to Do Personal Budgeting?
• Take charge of your financial situation. Create a
  personal budget. It can empower you and help you
  work towards achieving your financial goals. It
  will aid you in keeping track of your income and
  expenses which must be balanced. Besides, it will
  help you identify the areas where you can save
  more money to become financially stable.
• Here are some simple yet effective strategies for
  budgeting
• Track your expenses for a short period. Make a
  chart or write down your expenses, whether big or
  small. You will have a clear picture of how much
  you spend daily. This will help identify areas
  where money can be saved.
• Recognize the distinction between needs and wants
  . Needs are essential to survive like your
  expenses for food, shelter, and transport. Wants
  are your desires, like visiting a multiplex every
  time to watch a movie. Differentiate between them
  and establish priorities so that you can allocate
  money accordingly.
• You can roughly divide your income by allocating
  50 to essential expenses, 30 to savings, and
  20 to wants.

4

• This is an ideal picture. You can adjust the
  percentages based on your finances, but remember
  that your savings should exceed the amount you
  spend on wants
• Set up automated savings so that a set amount is
  automatically deducted from your account at the
  start of each month. Always try to avoid touching
  that account unless it is an emergency.
• Shopping at intervals is imperative, especially
  if you have a growing kid at home or for
  groceries. Make a proper list while buying
  groceries this streamlines your expenses and
  compares prices before buying. This will help you
  get a good deal on various items.
• You can be happy with your income if you have the
  wisdom to control your finances.

5
Thank you for spending your precious time
in reading this article!
About Living Smartly
Living-smartly.com is a website that publishes
information specifically focused on helping
people to make right choices in their every day
challenges. Living Smartly provides smart tips
insights that covers all aspects of daily living
such as general health dental health,
philosophy, social skills, technology, wellness,
gifts etc.