Flushing your money away

The News of The World reported that the late UK reality TV star Jade, blew her fortune. She was rumored to have made over 6 million pounds in her career. It just shows that if you earn the big money but don't save it, and just spend lavishly, you end up with nothing.

The late king of pop, the moonwalker himself, MJ, was also thought to be extremely rich, but only upon his death were his finances revealed, and he was much poorer than people thought, due to his copious spending.

This is why accounting for money, and budgeting, is so important. Every week, I enter all the receipts I have got from shops onto a separate spreadsheet so I can get a good idea of what I have spent for the month, and the rate at which I am spending. Sometimes, I ask myself why I go to such an extent, but then on the spreadsheet, I can literally see areas where I am throwing my money away. Then, I can take action to stop it.

If the above celebrities had budgets which they stuck to, and limited their expenditure, they would not have experienced the extent of financial difficulty which they suffered. It just goes to show that if you earn a lot of money but just flush it away, then you are not really wealthy.

Only by keeping records of my expenditure can I know where my own money is going. From looking at examples such as Kerry and MJ, I can see that a good way to go broke and flush your money away, is to not even bother to look at how money is being spent.