The assignment of every last quarter of the year is making sure I settle foreseeable expenses in the first quarter for the entire new year. I list down all the expenses I'll be paying for, use the average estimates from previous monthly tracking and set aside a fund to cover all for the entire year.
It consists of taxes, insurance, utilities, filial piety duties, debts, and emergency funds.
What I'm actually paying for? time and a peace of mind. No nights to worry about debt unpaid or dues. More time to think about where to put my money to invest or splurge.
I've been doing this for 3 years now and so far, the system works great. Outside emergency expenses and expenses pushed upon by someone else's circumstances, I get to sleep well most of the time.
The price to be paid includes not falling into the trap of unnecessary expenses. The so called lifestyle enhancements businesses tend to push on to consumers like they deserve. I'm not saying spending more on luxuries and travel are bad. But if one's financial security is constantly threatened by a hospital admission or crippling debt, maybe downsizing some lifestyle choices would work better long term.
It's like saving your future self the stress of carrying a financial burden you could've avoided. Trying to avoid debt, reduce debt, and invite debt saves one's mental health. I just find it unreasonable that people who have no financial security YOLO their lives acting that they'll young when the existential threat of living old in poverty is just as real too.
I'm speaking from observing my own family, relatives, friends, and patients retelling their financial woes. I don't want or need to experience the lesson upfront when I can learn the struggle from other people.
Money is going to be tight during the first quarter but the trade off is having a peace of mind during the 2nd and 3rd quarter. When you got your financial shit together, opportunities open up where you can actually reach for them. I learned there's no shortage of opportunities if you know where to look but you gotta have money ready to get something to happen.
Thanks for your time.
