Learn to budget and prioritize expenses from "summary" of Rich Dad Poor Dad for Teens by Robert T. Kiyosaki
Learning to budget and prioritize expenses is a crucial skill to have if you want to become financially independent. Budgeting involves creating a plan for how you will spend your money, while prioritizing expenses means deciding which expenses are most important to you and should be paid first. When you budget, you need to track your income and expenses to see where your money is going. This can help you identify areas where you may be overspending and find ways to cut back. By creating a budget, you can ensure that you have enough money to cover your essential expenses, such as food, housing, and transportation, while also setting aside money for savings and investments. Prioritizing expenses involves determining which expenses are necessary and which are discretionary. Necessary expenses are things like rent, utilities, and groceries that you need to survive. Discretionary expenses, on the other hand, are things like eating out, going to the movies, or buying new clothes that are nice to have but not essential. When prioritizing expenses, it's important to focus on your needs before your wants. This means making sure that you have enough money to cover your essential expenses before spending money on non-essential items. By prioritizing expenses in this way, you can make sure that you are using your money wisely and not overspending on things that you don't really need. Learning to budget and prioritize expenses takes practice, but it is a skill that will serve you well throughout your life. By creating a budget and prioritizing your expenses, you can take control of your finances and make sure that you are using your money in a way that aligns with your goals and values. So, start practicing budgeting and prioritizing your expenses now, and you will be well on your way to financial success.
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