Is dealing with money limited to directing the finance? If yes, then you are wrong. A person can only live a healthy financial life when he manages multiple things apart from money, like:
1- Envisage future expenses
2- Prepare for the sudden cost.
3- Managing previous debts
Similarly, one has to administer all things from small to significant expenses. But! The common problem that most the people face is that “they forget to include the smaller expenses.” And, it is a surprising fact that because of the small cost, one has to face severe money problems.
To overcome it, “Olive Rule” was introducing. You might be confused about how olive can help you to lead you to better money life. Wait! It is something different, read further.
WHAT IS OLIVE RULE?
Here, the word Olive use as a reference for a small cost. It shares the importance of a more modest expense, and the rule points how you can deal with them without affecting the financial life.
Though, many unfortunate events occur where you may forget to give priority to the small expenditures. And it becomes difficult to supervise the problem. Such cases can be easily manageable with some options, like loans for bad credit people from a direct lender—such option at least aid you to bring back the stability.
But! Do you think that taking assistance all the time a reliable option?
It is the olive rule concept comes, let’s see how you can follow this rule, and live a money problem-free life.
Steps to Direct Olive Rule
Four steps can help you to make an efficient olive rule planner.
Let’s execute it.
1- Go through the previous month’s spending.
2- Include small expenditures while creating a budget
3- Do not overlook the sudden cost.
4- Pen down all essential future spending
Go through the Previous Month’s Spending
Most of people make “excuses” that they are not able to predict the small cost. It occurs instantaneously and becomes impossible to notice. To overcome this situation, you can check the previous month’s utility bills.
In general, it will almost contain the necessary small and substantial costs. So, you can take a rough idea from there, and select those which can be repetitive.
Include Small Expenditures While Creating A Budget
Once you check the previous month’s details and acquire all the necessary costs, consider them in financial planning. It will assist you in getting the total expenses and will lead you to manage them with monthly income better.
Pen down All the Necessary Future Spending
People may ready themselves for the cost they know, but it becomes tricky when they met with some they are not aware of. No doubt, it leads the finance into deep trouble, and it can only avoid if you analyze the current situation.
Suppose you purchase a car without predicting the future cost, then what will happen? It is straightforward that you will get surprising money outflow. It happens because you fail to predict the future.
Who told you that you could not see the future? Yes, you can, if you go through the current decision making, then envisaging becomes easy.
Make every possible outcome, whether small or large and see that the decision is correct or not? It will facilitate you to avoid financial mistakes.
Do Not Overlook the Sudden Cost
It is crucial to prepare yourself for a sudden expenditure. These could be anything from medical to education. You have ready in advance so that you can bear them without hurting the current financial situation.
If you think it becomes an arduous work to manage finance as well as consider saving funds, then relying on borrowing method, like a quick loan with no credit check, may help you to reduce cost. After all, it is your choice, and if you think you have substantial financial savings, then you can overlook this part.
We hope that with the help of this write-up, you can better understand the concept of Olive rule. Though it may seem complicated, once you gear up, managing the finance becomes an easy task. Just provide enough time, and make a choice only when it looks correct to the money life.