Chap 11: Budget Stuff

Let’s be honest. Perhaps one person in a hundred does a budget and actually follows it –and odds are you’re not that person. The vast majority of people feel they work hard for their money and want the freedom to spend some of it without feeling guilty or accounting for every dime. This is not a book about budgeting – although there are many excellent sources. Unfortunately, many become tedious or don’t use realistic examples. Yes, anyone that cuts out one latte a day could save thousands over the years, but that money never shows up, does it? Maybe skipping the lattes just makes it possible to buy some lottery tickets Friday night.

So instead of a budget would it be better to call it a Financial Reality Check and just do it every six months? The choice is yours and either option is fine as long as you do something to set a game plan and are able to measure progress in specific ways. How much energy would you spend on getting a raise? Well, having a critical look at your expenses and your budget is even more profitable, because any raise also causes more taxes but only a small amount of extra income. That same effort in reducing interest, fees and expenses pays off in much bigger ways – for a lot more money…