Top 10 Liabilities to Avoid

I budget a lot and it has been a part of my monthly routine especially when paydays are near. There's no perfect budget and it really changes a lot especially when our income starts to grow too. However, there are cases when even though there's an increase in income, the budget still seems to be insufficient. It is because of liabilities which triggers us to overspend more than what is really set for a budget item. Most of the time my budget seems not to work and I often spend more than what I really allocated for every item. What I found out is that there's some items which I think I may be spending too much. Here's my personal list on what liabilities we can really avoid so that we can follow our budgets religiously. 1. Too much food. I have to admit that sometimes I am guilty of this liability. I often eat more than what I really need. We should limit our intake of food to the ideal level. This will not only help our financial status but also our physique as well. 2. Too much cellphone load and mobile services. Relationships are built on communication and we allocate budget on this item. Unfortunately most people overspend on this item above necessity level. Spend on features that you really need, if you use your cellphone just for sending SMS then you don't need to get the additional minutes of airtime. 3. Too much internet connection. Unless you really need to be connected round-the-clock, you don't need a bunch of different internet connections for your different devices. Just setup a home wireless LAN and you will save yourselves additional dollars worth of some dongles and different broadband plans. 4. Too much clothes. If you still have presentable apparel, you don't need to buy a new one. Save the money for now and buy new one when you really need to buy a new one. 5. Too much medicine. Health is a very trending issue today and people are more conscious about their health as compared to the last decades. People rely on medicines today instead of doing it the 'natural' way. But this practice cost a lot more too. 6. Too much subscriptions. Aside from our internet connections and mobile phone lines, we also have subscriptions. It may be an online monthly magazine, cable television, and other mobile feature services. Identify which of your subscriptions could bring cash flow inwards and terminate those having more spenditures than actual income. 7. Too much gadgets. You love gadgets and so do I. Everybody loves them as they make our lives easier. But these gadgets are the most expensive commodities these days. Do not buy every 'new' one. Instead, get the one that you can use long-term. When you have still a 'working' gadget, you don't have to buy the latest version. Most manufacturing companies that creates these really don't put every feature in a single gadget so that you will have to buy the new one having the latest feature. 8. Too many Friday gigs. We hated going to work from Monday-Thursday but when Friday comes, we go to offices with a smile. It's because after the Friday work, we will go to some place to sit back, relax and enjoy. Unfortunately, this is not free. We tend to spend money getting to pamper ourselves and enjoy the night. This is also okay, but set your limits. Maybe once a month will do or seek out cheaper alternatives. 9. Too much insurance. We need to be insured. Not because we just need to have one but we should take care of our love ones even after our death. A lot of us have gotten the best insurances currently the market have. For example, Mr. Juan bought his first insurance a year ago but one insurance company has attracted him of a new policy because there's a a higher benefit and a lower premium. Some people just can't get enough but we don't actually need to over insure ourselves. Just calculate the right amount you want to give your family in case of your death and stick to that one. 10. Very few alternatives. Just because it is expensive doesn't mean it's the best. We live in a 'branded' society. Names matters to us in terms of commodities. Sometimes, we just buy because it is known and not because of it's functionality. When you need to buy something, try to research if there's a cheaper alternative that would be at least equal to the quality of the more expensive one. Remember, 'names' aren't everything. We are only the managers of our finances, make sure that we manage it well by avoiding the list above that sometimes ruins our budget.

Mark Hugh Neri

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