It's THAT time of the month, AGAIN!
Welcome to Financial Foofi! We kick off our journey with SRK walking you through that extremely tough time of the month and understanding the jitters around crypto winter. Jump right in
Hum ek baar jeete hai, ek baar marte hai, par BROKE? Vo har mahine hote hai
Face it. Even though there are still 10 days left to June end, your bank balance has already turned every shade of red. It's super low, maybe zero, and desperately awaiting fresh rains and ka-ching of a salary credit.
Unlike Simran, who lovingly pal-toed for Raj in DDLJ, your money won't come back to you, despite all your pleas of palat, palat, palat. So, now what? Time to budget!
It's all about 60/30/10
Do you sometimes wonder how your income is spent? But then you let the thought go. You’re budgeting, yes. But it's ineffective because it’s happening in a very passive, “eh, it's fine, I’ll manage” spirit.
When properly done, budgeting lets you take active charge of your money. Agreed, Kuch Kuch hota hai Anjali, once you see all of your brimming carts on Nykaa and Amazon. It's very easy to give in to those temptations. But with a budget in hand, you will have a clear idea of these areas:
Where your money is coming from
Where you are spending excessively
And whether it’s even worth it. That will mean better spending habits.
You can hack your way through budgeting via the 60/30/10 budget way. Start here:
Write down how much you earn in total. Full-time jobs, freelancing gigs- Include everything. Say this is Rs 50,000
Next, keep aside 60%, or Rs 30,000.
This is your SAVINGS/NEED chunk. You can also use this to pay off any debts, or EMIs. This is your holy grail, the funds that will fuel your future. But more on that later.Then, separate 30%, or Rs 15,000
This is for paying your rent and utility bills. It’s necessary so that you dont go begging your landlord to defer your rent or worse, survive only on Maggi 3 times a day a week before the month ends.Now, you have 10%, or Rs 5,000 left
Go CRAZY with this WANT fund. Do whatever you want with this money. Buy out your cart, go clubbing or just donate- you’re the boss here!P.S. Dont attempt to pass off that book collection as a NEED just because you love it Shiddat se.You can survive without it. It's a WANT. And that can wait. One way to stick to your budget is to keep impulsive shopping sprees in check. Otherwise, they can really hurt your finances. After you add stuff to your cart, try waiting 3 days before hitting that Checkout. Chances are, you won't even remember it.
I know the temptation of dipping into your savings to fund your immediate shopping will be super high. And you may also sometimes find your WANT fund woefully inadequate. But for starters, try sticking to this plan for a minimum of 3 months. And you’ll find yourself acing your monies, Jab tak hai Jaan, Jab tak hai Jaan.
TLDR: Spending is easy, budgeting is hard. But if you want a handle on your finances, start splitting your total income 3 ways. 60% goes to savings, 30% goes to paying bills and 10% goes to your fun, “do whatever you want” fund.
The Foofi Takes: CRYPTO WINTER
Unless you've been living under a rock, you must have heard of this “crypto winter” ringing everywhere. Basically, everything crypto is crashing. Some context:
Bigwigs Bitcoin and Ethereum shed almost 30% of their value since last week.
Celsius, Terra, Three Arrows, and other major crypto players are staring at serious financial and legal issues.
Most crypto exchanges like Coinbase are frenetically firing employees.
Globally, regulatory bodies are hawkishly hovering around cryptos and stablecoins now, thanks to the TerraUSD- LUNA crash last month. Together, these plummeting coins had wiped off about $60 billion worth of investor money.
At ∼8.8 billion, the current global crypto market cap has sunken well below the all-time $3 trillion high it had hit in November 2021.
Simply put, the market is undergoing what experts call “correction”. What this means is that after a wild run last year, it’s now time for all crypto tokens to go back to being good, reasonable boys.
Think of it this way. You have a crazy party one fine day. You’re out and have fun to the point of extreme exhaustion. Won’t you want the next day to rest and recover? Crypto too, is in a similar recovery mode right now. But it ain’t easy. Investors might have to face more bloody returns before they finally get to see some green shoots
This day, that Year
I wonder why!
On this day in 1837, Queen Victoria ascended the British Throne. The absolute QUEEN that she was, her reign lasted 63 years. But that’s not all.
When she died in 1901, her private fortunes were estimated to be a whopping $100 million. Moreover, she was also the first royal to pass a treasure trove to her successors. In contrast, her predecessors had only passed on humongous debts to their future generations.
One financially savvy woman, her.
Here for "Hacks to capture more properties than your siblings"