Financial Life

I think that there are two major components to my financial life - saving and spending. Saving encompasses short and long term goals and the idea of investing. I'll try to break down these things in various posts.

Generally, I think that my financial life centers around my general philosophy that a person should live below his or her means. I'm definitely tempted to live it up because I'm constantly surrounded by enticing advertisements, stories and thoughts of "what about me?" and things like that (and of course the idea that one should live for today because you don't know what tomorrow brings), but I think that everything should be balanced. Sure, I can spend everything I have today, but what if I do live tomorrow? How will I pay my mortgage or pay my other bills? Balance is the key. Balance.

There are a few priorities and really, money is a finite resource. I should balance my desires against my real needs. Plus, I try to think about the long term. I would like to retire at some point and that can't happen unless I plan and act accordingly. This long term goal still has to be balanced against my need to also live for and enjoy today.

I've create a pseudo budget, I generally know how much I bring in each month and I know what my fixed expenses are, but I also make saving a priority. But, if I want to travel or do something outside the norm, then I know that I have to save separately for that or offset it from my other expenses. Going into a deficit for unnecessary things would definitely work against my long term goals.