Describe an interesting discussion you had about how you spend your money. You should say:
who you had the discussion with
why you discussed this topic
what the result of the discussion was
and explain why this discussion was interesting for you.
A few months ago, I had an interesting conversation with a friend about some of my financial expenses. I was facing financial difficulties and there was a lot of disorganization in my expenses, which was reflected in the imbalance between my income and payment of expenses that I had at the end of the month, and the fact that my cash flow was worse than I had expected.
My friend was an international business administrator and several years ago he had started his own business and that involved a lot of organization and strategy when making payments, investments and even income, as he wanted his company to grow and strengthen day by day.
He told me that the change from being employed to working independently was difficult because it required greater autonomy and responsibility.
The money that came to him was not only deposited to his account to spend, he had to look after it and distribute it in such a way that it would cover the different expenses and investments and in addition he had to keep the accounts thoroughly balanced, to avoid any losses.
He made me some recommendations about the management of my money, one of which was to save 10% of my salary every month, as difficult as it seemed. Typically, I prefer to purchase things or make a trip, but the main thing is to save 10% and put it aside, like untouchable money, that could be used for any eventuality, unexpected situations, health difficulties, an emergency, house repairs, basically anything unforeseen: a “mattress of money” as he called it, can get you out of any mess at a particular moment.
Another recommendation that he gave me was that I should plan my trips and purchases. Many extra expenses are incurred when people buy something expensive in the spur of the moment or go on a trip without previous planning.
Sometimes, the same item can be purchased at almost half the price with some planning and a bit of shopping around. And travel tickets are always cheaper in the off season, or low season.
Organizing your year thinking about some big purchases like a computer, a new camera, a couple of vacation trips will be able to focus your finances, so you can buy at the most appropriate times and save money.
It was a very useful conversation that I had with him, and even though he only gave me two recommendations, they are simple things that helped me to reduce my expenses and to think better about my financial planning and economic situation.