As a young girl growing up in England, one of my late father’s favourite pastimes was going on walks with his brother. He automatically included us children in his plans without offering us any option! My father started planning ahead of time: he scheduled a date, then took out the maps and guide books and he chose a walk. Next, he planned the drive to the selected location. I used to be amazed how we would drive for hours and always arrive at our destination without getting lost. The ramble inevitably had a pub in the middle where my father and uncle would pop in for a beer and we children waited outside with a bottle of cold Coke and some crisps.
Nowadays, we don’t need to plan long trips with paper maps, we can either plan the trip online or, even more easy, use the GPS or a smart-phone that navigates the journey for us and also tells us how long the journey will take and when we can expect to arrive.
When my father planned his trips he took into account, travel time, walk time, pub time and travel time back home. The end result was a wonderful day out, even if it meant trudging through field and forest come rain or snow, that created long cherished memories.
One law of physics states: “If you aim at nothing you will always get there”, and I have yet to meet the person who drives their car without a destination.
Budgeting is just the same. Throughout our lives we may earn thousands of shekels, but if we do not have an overall plan and destination for what we want to do with our money we will end up not achieving anything, and we will sit in our rocking chair and wonder where did all the money go?
Our GPS in the financial world is our budget. We have to know what and how much we are spending and more importantly, what are our long term goals. Whatever path you choose is fine, so long as you know you are on that path. The figures are quite startling, 76% of the population feels out of control when it comes to their personal finances. This statistic should be the other way round with 76% of the population feeling in control of their finances. The only way to achieve this feeling is to work with a budget.
Remember: Money is active, dynamic and that is why it is called currency, from the Latin currens meaning flowing or running, because it is moving all the time. Therefore you should always tell your money what to do otherwise, if you allow a lack of direction, your money will always manage you. (David Ramsey)
The simple rule of budgeting is that you have to sit down once a week and track your expenses so that you know where and how you are spending your money. Contact me to receive a free budget form.
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