For Financial Stability, Budget is Out – “Spending Plan” is In:
7 Steps To Run Your Life Profitably
It’s back in vogue – a spending plan! – this will make your life easier and more enjoyable.
I can hardly spit the word ‘budget’ from my lips – but a ‘spending plan’ is filled with personal freedom. This is about the power of your money and the energy that it has for you. Get that? It’s all good.
Now is the time to get up to speed on your Spending Plan – for sure. Now is the time to monitor your cash – so that you run your life like a business (what a concept) and make a profit at the end of the year (amazing).
Americans forgot this concept – but hey, heads up – it’s back in vogue – and with economic uncertainties – a spending plan and a means for operating your financial life are essential.
If you follow these steps, you’ll feel in control of your money. Remember, there is ‘hidden’ money’ that slips away when you are not aware of your dollars – and you could be richer than you think!
Here’s How to get started:
Step One: Track your expenses (easy way to do it is to use a debit card and Quickbooks – and even download your transactions from your bank). Be in touch with grocery, utility, insurance, health care, services etc. – so that you are fully aware of what your monthly income statement looks like.
Step Two: Divide your quarterly and yearly costs into monthly costs too so that they go into your spending plan. These include auto and home insurance and real estate and estimated federal tax. Even include the cost of tax preparation, divided into a monthly cost, into your spending plan. It will feel good – and possibly be an eye opening experience – to get clear on all of this.
Step Three: Use a debit card with your checking account. It will help you to monitor your cash better. As in – let’s see? – got cash, can buy those red shoes – no cash, well another time. By using a debit card you are more closely in touch with your spending plan and can make buying decisions more easily.
Step Four: Each month make a profit at the end of the month. Your spending plan can include some frills (yes, for me, it’s something fun for my closet too – whatever your fancy) as long as you make a profit at the end of the Month!!
Step Five: This is about respecting money. When you put money in your wallet – put the bills in order from small to large – money notices if you respect it. Have you ever noticed that wealthy people count their pennies – yes – that got them there – and they like it and want to stay rich so they pay attention!
Step Six: What to do if you look at the bottom line of your monthly income statement – and go ‘yuk’? You have two choices. They are: spend less or earn more. I’m happy to say that not one of us uses all of the skills, tools and talents that we graciously were given – and I personally love that challenging part of asking myself how I can add more value to others lives, be really good at what I do – and for this be paid more. Money is often about stepping up to be a fuller, more functioning person – and money will show you when this is happening.
Step Seven: Live a simpler life – where your wish list does not overwhelm you – and your closet is smaller and no need for a storage unit. After all, half of the world’s population lives on $2.50 a day – imagine – you’ve already enjoyed life’s blessings abundantly if you are reading this column – and getting a grip on your spending plan can be your key to relaxing into happiness.
Congratulations! You are on your way to a profitable life! I wish you money to manage and hope that you fully enjoy the experience.