Does a small knot form in the pit of your belly at the thought of scrutinizing your spending habits? If so… you’re not alone! Worldwide, one in five people experience some degree of financial phobia according to a recent Cambridge University study.
All phobias fester in darkness, but they evaporate in the light of exposure. Dragging the numbers into the limelight is the first step toward peace of mind and financial freedom. Quicken or Microsoft Money can take the agony out of tracking your expenses, and once you have a handle on the figures, you can re-think how you spend your money.
Instead of considering the pain—where you have to cut—think of budgeting in terms of what you’ll get if you change certain habits. At $3.50 per day, the annual price of a triple soy latte could cost more than a Hawaiian vacation. Economics is about choices. Are white sandy beaches enticing enough to make the “Folgers switch?” When you keep a budget, you get to decide!
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