Our money is being stretched in multiple directions every day. Someone, somewhere wants that dollar that is in our back pocket or purse. The laundromat, the hair-stylist, the grocery store, the mechanic, the barista at our regular coffee stand, and of course, don’t forget the government. All want to lay claim to that green bill, that piece of legal tender just waiting leave our wallet and find its way into a cashiers till. With all those hands out wanting a piece of our hard earned money it can be difficult to find enough of it to go around. And while it might be tempting to consider just cutting a few people out (that 25% to the government would be a fun place to start), the legal ramifications typically help persuade us to use a different method for managing our money.
What we need is a plan. I know what you’re thinking, “not the dreaded budget”. You can call it something else if it lowers your pulse a bit, but a plan is what the doctor ordered for your money. A spending plan for your money is want will help insure that each bill gets paid to the right person, at the right time, for the right amount. Wow, that was so profound. Hahaha. I know, but beyond the basics, a plan will also help you reach those goals you have jotted down somewhere (including the ones that jotted down in the back of your mind, like retirement and/or funding your kids college one day). A plan will assist you in saying yes to the items that must be dealt with (the home mortgage) and no to the items of less importance (that magic set that will fulfill your childhood dreams of becoming the great Houdini) during tight months.
A plan will help simplify your personal financial world. Get your money matters down on writing and put it somewhere that you’re going to see it several times a week. Repeat this step every month so that each dollar that comes in has to a home to go before the month is over. And here’s another novel idea, when there’s a little extra some month, start building up that emergency savings account! No really, it’ll pay big rewards when a future month is tighter than expected. Living on a financial plan doesn’t have to be a big, scary ordeal, but it needs to happen if you want to be successful long-term with your money.
Money Talk With Gabe 