Finances – Expectations Vs Reality

How Your Expectations Don't Always Match Up with What You Actually Get

We all want to be able to afford the lifestyle we want. This is our expectation. However, the reality is that this is often not possible without sacrificing something else in life - like spending time with family or becoming a workaholic.

"What to Expect When You're Not Expecting – The Good and the Bad"

You won't always have it all

Finances are often a much-discussed topic as it's such an important part of our lives. There are so many external influences on our finances and thus it's easy to feel overwhelmed and get stressed about it. However, don't worry. The stress will eventually go away once you get over your initial shock and expectations

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How To Compartmentalise Finances – A Survival Strategy
People often don't know how to effectively compartmentalize their finances. By compartmentalizing, we mean separating out all the things that relate to money that affect it.

For instance, a lot of people, including myself, keep all their money together in one place. This is often called "financial irresponsibility" or "financial bloat".

Reality vs Expectations

It seems counterintuitive but if you live a life of expectation instead of expectation vs reality, you will likely miss out on things and be dissatisfied with what you are really doing. Example: You expect that your company will pay your bills on time😉. It probably isn’t going to happen. In fact, it very well might default. 

On the other hand, you expect that you will be paid every week and that money will just magically appear in your account. In fact, it’s not going to happen. You’re going to have to do some work on your end to make this happen. Why should we expect things that are unlikely to happen? Why shouldn’t we simply live our lives with our expectations? The more we are willing to do the work to make our plans happen, the more likely they are to happen.

What Is Your Financial Reality?

You must first define the reality that you and your family are living right now. Start by identifying what your normal spending habits are, including average monthly expenses, average debt levels, and the minimum amount that you can afford to spend every month. 

Next, review your savings goals and take stock of your liquidity situation. Oftentimes, people overestimate how much money they have available to save and they are therefore trying to save more than they actually can.

 For example, if you are planning to save $500 per month, but have only $200 left in your savings account, you are increasing your spending and not saving money. Your money situation should be a simple, easy-to-follow path that you follow day today.

How To Get Back On Track

How To Choose The Right Financial Plan Stop Being A Huge Spender Use Your Savings Wisely Let's get started! Now you can claim a great start with these tools to get you going! Note that the infographic is not sponsored by any company or publication, but was created and designed for my personal consumption.

Tips to Save Money

Live simply There are ways to reduce the amount you spend. Try living simply. Stop running to the supermarket and stop using the car for everything. This can be difficult but it can be done. Rather than getting a car for long road trips, use public transport. Park the car in your garage every night and use the car for other activities. 

When you spend money, try to avoid 'going shopping' as much as possible. Instead of a monthly card at a shopping center, instead, go to a supermarket that delivers groceries straight to your door. To save money on accommodation, look for areas that have more family-friendly activities nearby. Maybe take in a family that lives down the road. Also, check out the Internet for cabins and hostels that are geared toward younger family members.

There are still no certainties in life. It's the best we can do to give ourselves a realistic expectation and then make choices accordingly. You deserve to be happy, otherwise, why would you work hard to achieve your goals? Here's a free guide on how to get the balance right between your savings, business, and family to achieve your goals Get started on the path to your own financial independence by accessing your FREE mini-guide below.

The above articles are intended for informational purposes only. "Money Sources" accepts no responsibility for loss that may arise from reliance on information contained in the articles.