Money is critically important at every stage of adulthood, but it can sometimes be very difficult to manage, especially when we have too many expenses, too little income, or when we mismanage our money due to mistakes or a lack of knowledge.
According to the authors of the book All Your Worth, however, there is a solution. The real difficulty lies in balancing our income, outgoings, and extraordinary expenses. Many people often purposefully ignore certain expenses, or leave them to chance, but the Warrens maintain that all costs are both manageable and predictable.
They claim that their method is infallible, as it uses a series of steps to help us create a definitive business plan. What’s more, this method allows us to become more care-free, to sleep better at night, and to calmly weather the inevitable financial ups and downs that everyone goes through in life.
In order to keep our finances in check, we first have to get to grips with our current situation, so that we can make a realistic plan for the future. If we earn 100, for example, we will not be able to spend 90, because the remaining 10 will not be enough to cover all our extra expenses. This is a simple example that shows the kind of work we need to do, in order to come up with an effective plan for a financially secure future. If, on the other hand, we earn 100 but only spend 40, we will be left with a very large and useful margin.
Achieving financial equilibrium allows us to pay the bills, to have fun, and to set aside savings, so that we are able to pursue our dreams.
