Life | Finances
Why Budget When You Can Do This?
Where does it all go?
Have you ever said something like, “Where did it all go?” or “I don’t know where it all went.” While most will think that these statements are about money, they are equally relevant to time. It doesn’t just disappear, or does it? Let’s look at some possibilities and how to address them.
Where did it all go?
We hear it from others, and perhaps ourselves at times — “I just don’t know where all of my money goes.” Who hasn’t received their paycheck and spent more than they earned without keeping track of where it went? It is an all too common issue for many people.
It is easy to say, “Well, you spent it!” and while that is true, it isn’t much help. Obviously, you made a certain amount and have too much month at the end of your money. But why and what is a solution to this problem?
Like many things in life, the solution is simple, yet many find it challenging to begin, much less maintain it. It can go by the name of a spending plan, financial plan, or budget. While budget is the most often used term, it is more accurately called a spending or financial plan.
Without a spending plan, you have failed to plan. Surely you have heard what one of our country’s founders once said:
“If you fail to plan, you are planning to fail!” Benjamin Franklin (1706–1790)
Change the term
For many, the word budget is not well received. Perhaps we should get rid of the term altogether. After all, it has other meanings. Anything considered “budget,” like a budget television, camera, cell phone, or car, is inexpensive and cheap. While a budget can help you live on less, who wants to be cheap? Besides, when someone tells you, “You need to go on a budget.” it can sound like torture!
What comes across better to you — “You need a budget.” or “You could use a spending (or financial) plan.”? Working on and sticking to a spending plan sounds more appealing and substantive. It more accurately describes what you need to do and the outcome.
Where does it all go?
The only reason to ask the question, “Where did it all go?” is because you are taking your eye off the ball to use the old sports phrase. How do you fix this? Look at and watch the ball! Pay attention to what you are doing. Or do you wish to remain blind even though you have eyesight?
The simplest grade school math can help you keep up with where the money goes. Not to insult you, but you did make it through grade school, didn’t you?
As the father of modern management once said:
“If you can’t measure it, you can’t manage it.” Peter F. Drucker (1909–2005)
It only makes sense if you don’t or won’t measure it; you can’t and won’t manage it either. This is true for anything, including the money and time you spend!
What to do about it
As previously stated, the solution is simple, but following through can be difficult for many. If you can learn to follow through on this vital area, imagine how it can help you in other areas of your life! Check out this brief article to learn more about following through: How to Follow Through for Success in Your Life
Before developing a spending plan, you must come to terms with and realize it is for your good that you plan how you spend what you earn. You want to be more aware of where your money goes, so you no longer worry about where it went.
“More people should learn to tell their dollars where to go instead of asking them where they went.” Roger Babson (1875–1967)
As you begin realizing how important it is to work on a spending plan, you can better understand its importance. The better you understand why it is essential, the greater the sense of urgency you will have. This sense of urgency will move you into action.
How can you develop this sense of urgency, you wonder? Start asking yourself questions to help you more fully realize how crucial it is to your life. Here are a few questions to amp up your sense of urgency and get you to work on your spending plan:
- How can it reduce my worrying about money?
- How much better will I feel, and how relieved will I be once I have my spending under control?
- How will it ease the burden of saving for retirement?
- How will a plan improve my relationships and life in general?
- How will it feel, and how will it change me to have a spending plan in place?
- What are at least five ways a spending plan can benefit me?
- How can I start a similar plan on where I spend my time?
Take some time to journal or write your answers to these questions and any others you think about that are important. Doing this will give you a fuller understanding of why a spending plan is essential and how it can help you live a better life.
“The truth is that all of the time in the world is not going to help us if we don’t get our lives in order. We need to get our priorities straight, and we need to stop wasting time.” David A. Hunter (c.1964-present)
Commit to making a spending plan a priority in your life and enjoy the many benefits it will bring you.
In the end, remember only you can control your spending. Blaming it on someone else is shirking your responsibility as a mature adult. It is only a plan, after all. You control the proverbial purse strings.
“A budget (spending plan) tells us what we can’t afford, but it doesn’t keep us from buying it.” William Feather (1899–1981)
Final thoughts
Why not use some of that grade school addition and multiplication you learned so many years ago? Develop a deep sense of urgency about taking control of your money and your need to create a spending plan. Don’t worry about getting it perfect the first time. See your spending plan as a work in progress, which, over time, will become better and work well for you.
And remember, you can have a spending plan for your time as well! You are always spending your time, so why not plan it! Imagine adding a time spending plan on top of a money spending plan and how much greater the two will help you improve your life!
I leave you with some inspiration from a great old Irish statesman and philosopher. When you read the word wealth, think of its many meanings, including money and time.
“If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.” Edmund Burke (1729–1797)
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Bill Abbate Leadership Writer and Editor in ILLUMINATION
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