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I was at home recovering from my illness when I received a call informing me that the local cops in the area had arrested my aunt, and because her other siblings and relatives live a long distance away, I was tasked with going to pick her up. 

At the end of the day, I incurred expenses that I was not supposed to. Before that day, I had created a heat map of my financial responsibilities for the next two months, weighing them against how much I could afford to spend. 

The problem is that I was left without any form of miscellaneous budget, which scared me, but I figured I could survive two months without needing miscellaneous funds. 


I checked to see if I could incur some financial indiscipline that would cause me to spend beyond irresponsibly, and I had none, and after just two weeks, an unbudgeted expense pops up, and another one pops up this morning, shatters whatever financial heat map I set out for two months. 

Now, it is not just disappointing; it is even sadder because I assumed the unbudgeted expense would come from me, that I could slip up, make a stupid mistake, and cost myself, only for it to come from external (close family commitment) sources. Now, this does not imply that my heat map is flawed; the only issue was a lack of plans for miscellaneous expenses.



> Economics in school taught the concept of money management.

 I am fascinated by almost all economic concepts and topics because of the emphasis on money management. We learned about the scale of preference, need and want, and many other management concepts, but these ideas were popularized by scholars over 200 years ago in textbooks and papers, and the majority of them are rarely applicable in practice. 

For example, having money is thought to be the end of scarcity and the beginning of problem solving, but no one tells you that the more you can afford, the more you will have to pay for.

 It may appear counterproductive, as you would expect that the more water you drink, the less thirst you have, but this is not the case when it comes to money. Now, I am not talking about being rich and having a shapeless bank account; I am talking about the availability of cash for management purposes. 

99% of people in the world manage their own money, and while some do it better than others, we must all agree that no one does it perfectly, and this is due to a lack of resources to deal with potential consequences.



Management is a 350 year old problem, and no no has been able to cut it. It is difficult when you are broke, but even more so when you are not. With money, the more you can afford, the less you can spend. It feels insane, but that is it.


Despite our best efforts, we frequently incur stupid debts. It is not due to carelessness; it is simply a lack of funds to pay off these ridiculous debts. However, having enough does not only leave you vulnerable to new expenses; it can also provide you with the freedom to take risks.




Management is an entire institution that is older than man and older than modern solutions; it is unique to different people and situations, and there is no textbook or literature that can provide the right management advice that is specific to each individual. Having miscellaneous & emergency funds already covers 90% of everyone with management responsibilities. This is the only hack that works. No one can give you tips that's peculiar to you. Paying a subscription fee to a financial guru is irrelevant because most textbooks on management only preach general rules and concepts.



## Learn from your own mistakes. 


**Experience is the best teacher** I hate using this cliche, because I am not a "quote person." However, this is one of the most honest and concise phrases in human history. You develop your own management strategies and lessons by making your own mistakes.


 The funny thing is that you will not make just one mistake; you will need to make several mistakes to learn many more lessons, and as you improve, you will become a master in your own lane. 

However, it is not as simple as it seems. Opportunity might only come once, if you're lucky it'll come two or three times, but what if you get one lifetime opportunity to change your life, you messed it up, learn your lessons and the opportunity never comes again? 

That is a harsh reality; some financial consequences leave you with more than just experiences and wisdom; they also leave you with irrecoverable losses, which is why you can be a seasoned sage and have nothing to show for it.

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> **Interested in some more of my posts**



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##### [Why Is the grind getting harder?](https://hive.blog/hive-146620/@josediccus/why-is-the-grind-getting-harder)



##### [Monopoly Is the Death of Civilization](https://hive.blog/hive-146620/@josediccus/monopoly-is-the-death-of-civilization)


##### [Survival: Choas and Scarcity](https://hive.blog/hive-146620/@josediccus/survival-choas-and-scarcity)


##### [Crypto: Gut & meaningful Connections](https://hive.blog/hive-146620/@josediccus/crypto-gut-and-meaningful-connections)


##### [What is the primary barrier to entry in Web3?](https://hive.blog/hive-146620/@josediccus/what-is-the-primary-barrier-to-entry-in-web3-dfo)


##### [What Are Some Things You Should not Do During A Bull Market Year?](https://hive.blog/hive-146620/@josediccus/what-are-some-things-you-should-not-do-during-a-bull-market-year-fbh)





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