Are you managing money or just reacting?

[bakasabo]

For many years I got used to putting down every expense I make and income I get (fiat only). I have an app with categories and it not hard to follow that daily routine. As it has history, I can always monitor and adjust my money expenses. I think that even without that app, I would be able to control finances. Like others, I have some unexpected expenses, but they are rare. Whenever I go shopping, I dont have a strict budget, but I have a habit to compare prices. I suppose I spend to much time doing shopping, but I compare prices and select more suitable, best price for offer.

[Unknown Op]

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 have experienced favour from crypto investment base on the knowledge I have towards the investment. always learn from people mistakes, because when you learn what have made other investors to lose money I don't think you will like to invest your money in such project than to look for projects that will double your profit. When you study the project you are about to invest your capital, it will be hard for you to move without paying attention to what you observe from the project, because you have seen something that will make your wish to come to reality. You have to pay attention on how you handle money, because there are some money you don't need to put them in the bank than to invest them in crypto to expect something big in the future.

As an investor you have to acquire skill on how to manage your resources, because investing in good projects it will make your resources continue to grow and you will never lack money.

While it's true that if you do a great job at investing, you will grow to a point where you will not need any money and you will have all that you could need. There is also nuance to it, which is the fact that when we are dealing with investment, mistakes will happen, so you have to make sure that you study and experience as much as you can, and that takes time and money, so you are not going to be great on day one.

If you think like that then you are not going to get anything good, and you will end up with bad problems if you do not realize how this is done. Just do all you can do about learning and gaining experience, before you start to think that you can grow, that's the most important difference we have.

All people are different from each other and people should take action which matters a lot because we are watching many people who have money to learn so skills and they are wasting the time on only learning skills and they are not ready to take action in life. If you will take action then you will be more successful in life because Money is more important than anything in life and if you will give focus on earning money it will be best for you. People are Gaining attention from different people and they are not doing actually because they only want to show other people they are rich and then stable in life and they want more interest from us which will make them wealthy because people will get teaching classes from them.

[Razmirraz]

Managing finances amidst rapid economic changes is a very challenging task. Most people just react to situations as they occur, instead of proactively managing their finances. Here there is a clear difference between the two, managing finances wisely (tracking trends) means making plans for the future or in other words, building profit reserves to face unexpected changes. On the other hand, reacting to unexpected situations is simply adjusting habits after feeling pressure.

I will manage my finances by trying to maintain a massive source of income, prioritizing needs over wants is also the best choice to keep income greater than expenses. Managing finances proactively amidst economic changes will make it easier for me to face unexpected changes.

[tabas]

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?

In these times, someone who's not good in budgeting will feel how tough the situation is right now. And that will force them to start tracking their expenses and become better on how they handle their money and finances. Before, as long as I am earning I don't mind thinking of where I am spending my money. But when I am noticing that my pocket is being tight and the budgeting needs to be given attention because things are about to get wrong, that's giving me the red notice that I have to make it up and fix it before it gets worse.

[atookz]

With the ever changing economic landscape, a large number of individuals are going about their finances without a sense of direction. When decisions are arrived at, it is when pressure occurs. When the prices are increasing, costs are increasing, or situations start to overwhelm. Until then it is business as usual, with no thought or foresight.

Consequently, it is not management that is being performed, but only reaction, is what occurs. Money is not really controlled but a reaction to the situation. And where the change also is too sudden, everything is reduced to a few choices that have to be made in a hurry. The challenge of money management makes individuals to respond to situations.

[demonica]

I'd say that I'm managing my money based on my needs. But when things get more complicated, of course I have to adjust how I managed my finances to fit my needs during a crisis.

On a usual basis, I'm more free to spend my money on other things as long as I'm able to fund my needs and essentials. But with the current situation with economic impact on everyone, of course I have to adjust and tighten my budget. I'm more strict with how I spend my money especially on my wants because necessities are my priority. And we're already seeing the price increase on our basic needs so it's normal to really adjust your finances.

[Hamza2424]

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.

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 am kind of in between, because we can't do anything after things go wrong, we have to live with it bro, but before that we could buy things in bulk, like groceries, gas, or anything that we think is going to be affected first. But if you don't need that item, don't buy it by saying let's buy it just in case.

The first thing we should do in this situation is keep our money out of banks, not all, but keep some in cash because it is better to have cash than a dead smartphone in hand that we can't use to make any transactions. I am talking about bad times, not just financial bad times. Because usually high inflation is the case when someone actually starts to think what to do or whether we should even take steps. And that kind of high inflation starts from some pandemic type situations that can affect many countries.

[serjent05]

So the question is: are you being intentional with how you handle money or are you just responding when things go wrong?

There is nothing wrong with reacting on what is the economic current event even if we do plan our finances.  After all, if we fail to react to what is happening today, we might end up in a difficult situation.

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

If we want to be prepared for the upcoming days, we need to keep track of trends and current events.  After all, no matter how we prepare ourselves, if we are not aware of what is happening around us, our preparation might become futile since the plans and strategies we made might not fit the needs of tomorrow's economic situation.

[Emeraldo]

In a time as this one just has to adjust their spending habit. For me I have been forced to manage my resource. If I keep reacting I will have difficulty investing and saving so I have no choice but to cut down on my spending habit so I can properly account for my funds. The rise in price of commodities seems to get worst by the day and if I keep increasing my budget to meet up the expenses that comes with it it will become a problem in the future so while I am planning to increase my income stream I have to cut down on some expenses.

Yes I agree with you for all that you have said, the state of things now is quite discouraging and a lot of people are becoming tired of life as things are making many to be thinking even more than they ought to.
I heard of a woman who is a ground mother, that before now some years ago, and the children where doing well and taking care of her, only for things to become very hard for her children and she started begging people in her compound where she lives for food. The people in the compound are now complaining that she is inconveniencing them and the demand is becoming too much from her.

[Nanga Parbat]

I am always intentional about how I spend money but the truth is that no matter how hard I try, I still respond when things go wrong. The way the economy is right now, you cat tell what will happen exactly the next minute expecialy in this part of the world. You might plan ahead and build some form of cushion, but reality will change everything and make you spend more, as if you never prepared for it. Reality has it way of surprising us.

You do not realize how much money you spend unless you have some responsibility.Then you spend it without worrying.But as soon as you have some responsibility money will seem like a flow of water to you which is true.Nowadays everyone is worried about spending too much money and the surprising thing is that people do not even reduce their expenses.I have seen that those who are most worried about money tend to spend more.The main reason for spending too much money is inflation which is increasing.Nowadays even the rich are worried about spending money but still there is no final solution to this problem. How to completely avoid this problem.

[Nanga Parbat]

You are saying it the way it is. Many people have no stable source of income and today they will earn what looks like your dream income and tomorrow their income runs down significantly as it they never collected anything far better than that. Learning to manage your finances is a good thing to practice at all times but it is also important to note that reality will always hit at us whether planned or not, especially when you do not have a stable source of income.

Everyone is trying to manage their budget according to their income. But it is reality, day by day it becoming difficult because of inflation. Every day we have to think about cutting expenses on any extra things, but over the time even essential things are affected . Managing expenses become challenging specially for those who have one job. By looking world's scenario I feel, coming year's will be more worst for everyone. All traditional principals of saving and investing will be not working as we needed. People who are working abroad have no future job security because of current war. Huge percentage of youth are affecting because of job threat.
So wise attitude is that we have to be alert about our future and should be conscious, and in my opinion everyone should make effort to prepare themselves for at least next 2 years. Because I think years will be required for global economic system to be stabilize. Now managing next few years will be crucial or literally will be challenging for almost everyone to be manage.

[slapper]

You are saying it the way it is. Many people have no stable source of income and today they will earn what looks like your dream income and tomorrow their income runs down significantly as it they never collected anything far better than that. Learning to manage your finances is a good thing to practice at all times but it is also important to note that reality will always hit at us whether planned or not, especially when you do not have a stable source of income.

Everyone is trying to manage their budget according to their income. But it is reality, day by day it becoming difficult because of inflation. Every day we have to think about cutting expenses on any extra things, but over the time even essential things are affected . Managing expenses become challenging specially for those who have one job. By looking world's scenario I feel, coming year's will be more worst for everyone. All traditional principals of saving and investing will be not working as we needed. People who are working abroad have no future job security because of current war. Huge percentage of youth are affecting because of job threat.
So wise attitude is that we have to be alert about our future and should be conscious, and in my opinion everyone should make effort to prepare themselves for at least next 2 years. Because I think years will be required for global economic system to be stabilize. Now managing next few years will be crucial or literally will be challenging for almost everyone to be manage.

The tools that are available to "prepare" are themselves compromised right now. Save money in what currency that not losing value faster than you accumulate it? Invest? Markets have been increasingly disconnected from any economic reality. They react more to sentiment and political noise than fundamentals. Property? Priced out for most people under 40 sometimes 50. So we're told to prepare but the preparation mechanisms are all quietly broken.

The global economic system wasn't really designed for conditions we're living now. It was designed for growing with cheap energy inputs, fairly stable geopolitics, demos that kept the labor cheap. All of those are in reverse at the same time. 

And the youth is affected from job threat . But also, the people working abroad, sending remittances home, holding entire families up on one foreign salary. That's a form of economic architecture that took decades to construct. It is currently getting destabilized by conflicts that they had zero say in. That's seriously devastating, and deserves to be called devastating.

None of that gets to me nearly as much as what it does to your head. Can I afford this, should I skip that, what happens if something breaks, what if I get sick? People get used to it and label it normal and forget that it's actually corrosive. It changes how you think.

I don't have a neat answer. I really don't. The "be alert and conscious" advice you gave is correct and incomplete. Alert to what, specifically? Conscious towards what decisions?