Are you managing money or just reacting?

[iv4n]

Do you track trends, plan ahead and build some form of cushion or do you just wait until reality forces a change?

Well, I have a huge "things to do" list... But along the way, I have learned that priorities can change pretty fast, so the list can update & change at any time depending on the situation/circumstances. You can't plan everything, things simply happen, and we need to react.

So for many of us, life is managing money & reacting... trying to balance everything. And sometimes it's easy & simple, but there are rough times as well.

[sunsilk]

So the question is: are you being intentional with how you handle money or are you just responding when things go wrong? Do you track trends, plan ahead and build some form of cushion or do you just wait until reality forces a change?

I think someone who's done wrong in the past will make them react and make that wrong into right one. So, as we handle money, we're doing the right thing already because we don't want to experience bad decisions again.

And as for the changes, we should be reactive on it because if we're not then we won't be able to adopt those.

But if we're reactive and we've got plans once the changes come on how the trend goes in the world and related to finance, it means that we're planning our financial freedom.

[lizarder]

With how quickly things are changing in the economy, you know, rising prices, shifting income and unexpected expense, it is becoming harder to tell whether people are actually managing their finances or just reacting to situations as they come. Many only adjust their habits after they feel the pressure, whether it is higher fuel costs or increased prices in the market. But by the time those changes hit, the room to make smart decisions is already smaller.

People out there may no longer be talking about managing their finances, but rather about living in difficult circumstances. Rising prices, poor economic growth and the uncertain global situation are making life even more difficult, as people are now more concerned with how to adapt. When the economy is unstable and money continues to lose its value, the living conditions of the lower classes will be significantly impacted making it difficult for us to manage our finances for real life.

If we are unable to make the right decisions, our lives can worsen, especially for those without a steady income. Sometimes we also don't know whether we have managed our finances well or not because situations occur beyond the control of ordinary people and we are required to adapt to unresolved problems.

[SmartGold01]

People are actually facing hardship out there and of course it's important to make savings without being affected and or even spending and living an extravagant way where they would end up spending their money immediately they are being paid. Although, due to inflation, I mean the high rise of inflation people are mostly affected either their salary do no longer sustain them or serves them till they crosses to the next month where they could get paid. We should try our best to reduce expenses, money use in an unwanted thing expenses should be saved for another important and urgent needs when the need may arise.

[Nothingtodo]

I am trying to cope in the current economic climate but the way prices are constantly increasing is making it difficult for me to cope financially. My monthly salary is not increasing but due to the increasingly bad economic situation, it will not be possible for me to cope with the pressure and save at all.
The amount of salary I receive monthly is difficult to manage my family expenses and in the meantime, in the current situation, due to various global problems, war and increase in the prices of all products in the market due to fuel oil, it is very difficult to manage the economic pressure. I am not in a position to deal with this difficult situation, so it is very difficult for middle-class employees to adapt to the current situation, besides, saving is a luxury.

[bitgolden]

Waiting until reality force a change is a very bad idea, you have to be prepared for anything, the unexpected happens when you don't expect, there is nothing that money can't fix that's why you need to always be ready, work hard and smarter, also make sure you safe alot.

Do not play with investment, make sure that you are investing even if you are earning small money, if 50% is what will make you a better person tomorrow then it's still a change, better than beeen stucked with where you were yesterday.

I don't want till things get out of hand before I make any decisions, this have safe me few things already, always be prepared because life isn't waiting for anyone and change is vey constant, things should be expected to never get better years after years.

Waiting until you are sure is very important, because if you are not sure then you would be able to get a lot better in the end, it's very important for sure. I understand it may not be an easy task but it will definitely be something which will get a lot better.

So focus on your best profit and what you could do and a lot better. If you are uncertain and still end up trading then you are not going to get the best out of it and should be removing all of that from your mind, it won't work.

[gracreavix]

So the question is: are you being intentional with how you handle money or are you just responding when things go wrong? Do you track trends, plan ahead and build some form of cushion or do you just wait until reality forces a change?

..

For me, I have a different perspective.
The aspect of money/finance has actually been a major topic for years now.   Things like money management, making money, saving, investing, all of that.

And honestly, it is not something that will ever stop been talked about, because money has already become a huge part of how our society runs today.

Now, coming to what Crypto_Timothy said about how fast the economy is changing, rising prices, unstable income, unexpected expenses and all that. It’s true, all these things make it harder for people to actually manage money properly. Most people just end up reacting to situations instead of being in control, spending based on pressure and emotions instead of planning ahead.

But personally, I see it a bit differently tbh.

Yes, we all know the economy plays a big role when it comes to money, inflation and everything going on right now is real. And with how things have been and how they are still going, surviving financially is already tough on its own, not to even talk of breaking through.  Whether you call it managing finances or reacting, both sides are still feeling the pressure.

Because even if you say you’re “managing” your money, like budgeting, splitting it into needs, cutting down unnecessary spending, even trying to save.
Truth be told, that alone still does not take you out of financial pressure.

I’ve noticed that one of the ways people try to deal with all this is by being careful with spending and saving. which is good, no doubt. But those effort seems to not be enough.  

I remember talking about a book I read sometime back “Rich Dad Poor Dad” and it explained something deeper about all this.
Right now, we need to grow past just trying to manage money, and start understanding how to use that money to build assets that can generate more cashflow.

Because if we are being real, the main solution is not just cutting expenses alone.  It is increasing your cashflow.
Focusing only on reducing spending will always have limits, but increasing what comes in? that is were the real solution is.

So instead of putting all your energy into budgeting and trying to control every expense. it makes more sense to channel that energy into building assets, investing, and creating more streams of income.
Because even if you manage to save well, inflation will still catch up with your savings.  and slowly reduce the value of that money you worked hard for.

So for me, it is simple.
don’t just focus on managing money, focus on growing it.

[Emitdama]

Do you track trends, plan ahead and build some form of cushion or do you just wait until reality forces a change?

Well, I have a huge "things to do" list... But along the way, I have learned that priorities can change pretty fast, so the list can update & change at any time depending on the situation/circumstances. You can't plan everything, things simply happen, and we need to react.

So for many of us, life is managing money & reacting... trying to balance everything. And sometimes it's easy & simple, but there are rough times as well.

You are doing it right. I have a list too, I invest based on that, and so far it has done well enough. But I also have expenses and sometimes unexpected expenses happens, I had to deal with so many things in my life these days and it wasn't easy and it took a lot from me but I am doing a bit better nowadays.

I am hoping to do a great job in the future, because hoping that the unexpected expenses will eventually one day stop, and when it does, then I can start doing better because then my investments will make me money. But for now, I understand why priorities change and why we should be doing fine. It's not that easy and it takes time to change some stuff but with the way we are moving, we should be fine long term, you are right.

[uneng]

I'm trying to use my money rationally, managing the best I can, but sometimes it's just not possible, because we have to react to many sudden expenses imposed to us in daily life. There are taxes and bills everywhere to be paid, so you can't really give yourself the luxury of using all your money as you wish or for investment reasons, for an example.

Things are even more difficult during the initial months of the year, as the government imposes yearly taxes for those who own a house or a vehicle, so the earned money is spent quite fast on automatic mode.

If I don't give up on another expenses like food, leisure and goods in general, I fear there wouldn't be anything left to be managed anymore.

[Rabata]

I am not good at financial planning, but I definitely try. One of our common problems is that we only try to change when we are in a adverse situation. If we do not have a role in changing the situation, then it is never possible to improve that situation. Everyone should have a proper financial plan. Those who lead their lives according to the reactive financial situation will definitely fall behind. Each of us should think proactively so that we are able to keep ourselves completely safe at the right time. There must be a balance between how much a person earns and how much he spends. To make a good financial plan, one must follow a set of rules and regulations.