Apr 30 2015

Exactly What I Found Out From Bad Budgeting

MATT HOUGAN: The odd thingfeature of my experience in high school and college (and I believe this is relatively typical) is that essentially absolutely nothing I was taught had specific relevance for me in regards to investing or monetary planning.

The only death reference most high-school curriculum’s offer vis–vis investing is the annual stock-picking contest, which encourages the choice of high-beta vanity stocks and points people down a path of money-losing performance chasing.

The most important experience I had in regards to preparing for my financial life was when I was studying abroad in London. My study-away program did not have a disheat strategy; instead, I had a dealt with regular monthly budget plan, with a particular quantity of money to cover everything from meals to transit. Early on, there were a number of months where I just ran out of cash days prior to completion of the month. I keep in mind consuming nothing however rice and ketchup for 2 days and walking 2.5 miles to class since I couldn’t manage television.

There’s no love in poverty, and I was lucky in that I could always have called back home and been reluctantly bailed out by my parents. But I didn’t, and the ability to safely experience the pain of bad budgeting was a valuable lesson for me.

Matt Hougan (@Matt_Hougan) is president of ETF.com.

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