April 7, 2018
Having a budget is the best tool you can have. It gives you the ability to get through life without falling behind AND the potential to aim and achieve things you never thought possible.
By guiding your money and giving it a job to do, you gain exactly what you NEED as well as being able to invest in your WANTS.
Individuals, families, organisations, business’ and even countries all need a budget to run smoothly. Not one of them are able to earn and spend without a plan in place or they will fail and get nowhere; becoming stuck in debt and repayments.
You cannot just expect the money to be available for you to spend when you haven’t even thought of where it comes from, what you have to spend it on and exactly how much you need to spend. It should be earned, planned and allocated.
Life can get quite depressing if we’re constantly working to earn money but never getting any further than that. You’re left wondering what the point of it all is, when all you have to do is tell it what to do and where to go. Even if you have a great income, you still need to make it work for you the best way possible to avoid overspending and finding yourself in debt.
Oh, the things I could achieve with a budget on a great income!
It feels great to be able to pay your bills by the due date, but it feels even better to do this when you know you’re doing it in a way that keeps you organised, achieve great things AND saving you money.
By putting small amounts of money into various departments often, you will be able to have what you need; followed by having what’s left over to enjoy as things in life you want. Kind of like having your cake and eating it too. It will give you the ability to give your life meaning, instead of just ‘surviving’ by going around in circles and not really achieving anything.
If you want to enjoy your life, the first thing you need to do is create a plan, set a budget and from there just simply guide your income to where it needs to be. Be realistic though. Don’t set yourself up for failure by restricting your spending too much or you will not stick to it, therefore not succeeding.
Allow small quantities for vices in your current lifestyle simply by changing the amounts or frequency you spend it. This means it may take a little longer to get what you want on top of what you need (there is a difference) as there is more chance of following a budget, provided you don’t make it too hard for yourself to follow. You can then refine your budget as you get better at spending less.
This is the reason some people last only 1 or 2 weeks following a budget. You can’t just cut everything out and expect to be happy as this is by far the fastest way to fail.
All you should do is create a ‘guide’ as to where your money will be spent and follow it every time you get paid. Read my other article ALLOCATE ALL INCOME for help with this.
Remember, a budget is not a terrible or restricting tool. It is merely a repetitive reminder of where you are to allocate your income in order to achieve more than you currently are.
Give yourself and your family the life you want to live. You’re in charge of it, so get in charge and take full control.
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