Nothing Is Permanent in Your Life, so Make Sure Your Budget Reflects This.
When you are budgeting, you are probably deciding how much you can afford based on your monthly income. It’s wise to keep in mind, however, that you may not always be making that much.
As personal finance writer Jessica Moorehouse explains, nothing lasts forever. Grim advice, but true. You may not be able to expect the same job or income in the future. While there is nothing wrong with being optimistic about the future, having a contingency plan can help:
We are not like our parents’ generation, where we work in the same company for 40 years and then retire. As millennials, we love to move, whether it’s working in different industries or completely changing careers. Or we got fired, fired, fired because of the economy. When I find out that someone I know just got a new job with a pay increase and is already making plans for all this extra income, I seriously want to steal his credit cards and freeze them in a block of ice. This work may be here now, but there is no guarantee how long it will last.
How you deal with this impermanence can be different. You might want to create multiple streams of income or move towards a more minimal lifestyle . Your strategy can be as simple as keeping the monthly payments on your home low instead of spending money on the house because you can afford the monthly payments. However you handle it, the more prepared you are for the future, the better.
You Will Be More Successful If You Stop Believing In Anything Forever | Jessica Moorhouse via Rockstar Finance