Lovely Lolly

One of my favorite occupations is budgeting. I love doling out cash under different heads.  But not actually having the head of a bean counter,  my day to day accounts are not that accurately recorded. Sometimes most of a month may go by without any entries. But  different envelopes help to  keep track of where the money is going.

My first lesson in finance was learnt from  Shirley Conran’s marvelous book, Superwoman – Every Woman’s book of Household Management ; a helpful guide I would recommend for any person setting up house. Shirley has a marvelous sense of humor, which makes it all go down very easily.

From George.S. Clason ‘s  interesting and simply written , The Richest Man in Babylon came the idea that 10% of income should be kept aside solely for investing. The true import of this idea didn’t sink in until recently.  I used to think the money we save for different expenses like daughter’s weddings formed part of this 10% but it really doesn’t. And like Clason says, when you actually understand the idea of keeping 10% just for yourself and building up a nest egg with it no matter how loaded your life is with other expenses; it zaps you and is really a very happy –making thought.

A favorite site for personal finance now is Get Rich Slowly. Yday I read J.D.Roth’s  take on debt snowballing.  The traditional  rules of debt repayment are tweaked  so  the smallest debt is paid off first because it’s a psychological high rather than concentrate on the debt with highest rate of interest which is the logical thing to do. But we are not all 100% logical about money.

So today I recreated my Financial Goals List and made it much simpler.  And I feel really good about it. Now I have only 2 goals on which we should focus. One is an expense for which we have to save and the other is paying off a loan.  I find myself leaning so much towards the smaller amount because it’s easier to achieve. And after reading about debt snowballing, I can get rid of guilt trips about not being financially sensible and just be happy about what Im happy doing.

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