Friday, August 20, 2010

Budgeting by Instinct

Back in the days, it was always a personal choice to keep track of my finances every few months. I must have lost my way somehow and things weren't as neat and organized as I thought. This time, however, I had to make sure exactly how much I am free to spend due to the recent developments that will affect my cash flow. Like I always do, I clear out any pending credit card balances even before the due date and separate the payment so that I won't be tempted to use the money. I paid the ones I knew before I went on the two-week holiday, just in case. I also have to make sure the interests have not skipped as scheduled. 

I am not a fan of budgeting like allocating how much money to spend in this category. I base my expenses on what I want to do at the moment and the cash I have on hand. My instincts kicks in usually when the price goes over or occupies a huge chunk of my remaining money. Of course, the opportunity cost of an unknown future expense I might like even more than this thing I have now puts me in distress. Mostly to settle things, I leave things to slim chance. Chances are, after a while, I'm better off not spending at all. The incessant craving disappears in a few hours and everything is normal again.

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