Introduction
Money management is a crucial aspect of life that requires constant attention and improvement. Through my research and experience, I have discovered that boosting savings and establishing prudent spending practices can lead to a more secure financial future. To manage one’s finances, one should keep track of one’s expenditures, refrain from making impulsive purchases, and prioritize saving.
Premises
One premise of my conclusion is that tracking spending is crucial for effective money management. Maintaining a log of all expenditures makes tracking one’s spending and making necessary changes possible. For instance, if one notices that they are spending a significant amount of money on dining out, they can begin to cook at home more often, leading to significant savings.
Another premise is that to alter my spending patterns; I should avoid making impulsive purchases and prioritize my necessities rather than my wants. Before shopping, I should list the things I must get and stick to them. I can save money by purchasing in bulk or taking advantage of deals and sales. I should also limit my usage of credit cards to emergencies and necessary expenditures and refrain from using them excessively. I can consider setting financial goals, such as setting aside a certain sum of money each month and automating my savings to maintain consistency. I can also consider investing in a savings account or retirement plan to increase my interest earnings and watch my money grow.
Fallacies
One fallacy that I may have committed is the appeal to tradition fallacy. Just because I have always spent my money in that way in the past does not mean it is the most excellent approach to handling my money. The fact that I have offered convincing justification for why using a budget plan and a cash-based system are good ways to manage money has allowed me to avoid this fallacy.
Another fallacy is the sunk cost fallacy, which may, in part, occur due to loss aversion, which refers to how we perceive the effects of losses as far worse than gains. We are more likely to avoid losses than seek out gains. Additionally, we may decide based on loss aversion rather than considering the advantages acquired if we do not maintain our commitment since we may feel that our previous investment will be “lost” if we do not.
The total attempt is portrayed as a whole rather than in segments, contributing to a sense of loss when a decision is not made. Even if the later decision to stop committing was in our best interest, the narrative fails if we do not make the decision. We can still frame the story as a success overall, even if expenses are higher when we decide to follow through on a decision, such as going to the concert in the rain and with a cold. I have avoided the false dilemma fallacy by not considering everything as black or white or an either-or choice.
Hidden Assumption
My argument makes an unstated assumption that I earn enough money to support my current standard of living while also setting aside some money for savings and investments. Effective money management is challenging if my income is insufficient since I might be unable to invest or save. It is an unstated assumption since I do not say it directly in my argument, even though it plays a significant role in my argument overall.
Conclusion
In conclusion, I must develop a budget strategy and implement a cash-based system to manage my money properly. I can change my spending patterns, grow my savings, and invest in assets that will provide returns in the future by adhering to these two concepts. To change my spending habits and improve my saving techniques, I must develop a good strategy and ensure I follow it to the letter.
Table 1 – Chart of Premises and Conclusion
Table 2 – Chart of Fallacies and Assumptions