Don’t spend it before you’ve got it
Gosh this is a hard one for me. I have to admit I find this one of the most difficult to take on board.
How am I to learn this one? Any tips? I know I should:
- Budget for today and only for today. If I don’t have it, I don’t spend it.
- Ignore what I think or know is coming in, in the future.
- Put loads aside for tax – no, even more than that.
- No loans, overdrafts, no borrowings of any sort so I won’t be tempted to use future income to pay off debts run up today – or the reverse, run up debts today knowing that income from the future can be used to pay them off (very naughty).
The downside of spending future income is:
- The income may not materialise or be less than you thought. (Counting chickens that ...