Monday, June 12, 2017

Should a home budget have compromises?

What is a compromise? A compromise - in simple terms - is to basically settle a debate by reaching a peaceful agreement using two different points of views to create one solution.

In a home budget, the words: wants and needs require compromising to create a mature budget and a financial healthy one.

Many take for granted that wants and needs are the same. However, they are not -when it comes to managing and controlling money.

For instance, a want is something you do not need to survive on with items or things that you can live without. Most believe - we can't live without internet, phone service, expensive entertainment or name brand clothing, and other items.

However - food, water, shelter, hygiene products, transportation, and clothing are basic primary needs. Everything beyond this should be considered a want and meticulously evaluated and analyzed in the home budget for the "want" that it truthfully is.

For instance, phone communication and internet connections are a necessity to have to communicate with employers, families, and friends. The electronic devices we use to achieve this are optional on the quantity and quality we have with them.

Most pay for a landline telephone and a cell phone service. Why? Does the cell phone work at home? Then why pay extra for a landline phone? This is just one scenario how analyzing wants versus true needs can create a compromise in a home budget.

Why pay for a landline phone service when the cell phone service works well at home? There are many telecommunications services online and with device applications that one can fax from their cell phone and this feature no longer requires a fax machine nor a fax number at home - so - why pay for two phone services? This is just one way to compromise.

Many fail to see compromise as an effective and positive problem solving solution. They feel if their point of view is not taken in financial matters that they will lose, be deprived of something they think they must have,  or worse - they value their personal character of who self is based on by material items of wants that plummets their self-esteem when they don't get it.

It is a chemistry fact that spending money increases endorphins and other feel good chemical reactions in the body - when  spending money on wants - without restrictions and thoughts to a budget. But this feel good high has landed many people into bankruptcy - low credit scores - vehicle repossessions and many other hardships because one simply refuses to compromise what they value as a want or a need.

So should a home budget have compromises? Yes. Why? To create and achieve a healthy and responsible financial plan that gives security for you and others who reside with you. You can teach others to appreciate their needs being met and reaffirm that this isn't free - while - allowing a few extras of wants with freedom to spend.

For example, say you done paid all the responsibilities in your budget. You have $20 left to do whatever "want" with. Consider saving the $20 or use it to store browse or go watch a movie without seeing what's playing first. There are many healthy ways to spend money and get the high feeling without becoming reckless and regretful of it.

Many use gambling - for fun - at first. It can be fun. The video games that hit a big win that locks it up or the card games that allow you to win. Those things feel wonderful - when you win! But if you don't budget responsibly - you'll end up losing all of your playing money and your bill money too!

So be frugal. Think of compromises. Think of the relationship that you have with money. Think how money affects you on a personal or emotional and intellectual level and how money spending or budgeting affects others around you. For your perceptions will improve how you relate and spend money or it will be a stressful demise that never seems to end - no matter how much money you have.

Money is a tool that should build a life. Not destroy it. And if money is causing you more problems than it solves - it is you - that should seek financial help to see what emotional or intellect problems you have with your money.

For money is only an object. But how we use that object - always says more about us - than anything good or bad the money purchases or produces. Humans control the money. It should never be the money controlling the human.