Chapter 11: Budget Stuff

Let’s be honest. Perhaps a few people out of a hundred do a budget and actually follow it –and odds are you’re not one of them. 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 available. Unfortunately, they can become tedious or use examples that can be quite unrealistic. Yes, anyone that cuts out one coffee a day could save thousands of dollars over the years, but that money never shows up, does it? Maybe skipping the fancy coffees just makes it possible to buy some lottery tickets Friday night.

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.

Nobody can have a plan of where to go if they have no idea where they’re at right now. Vagueness will not do it, so force yourself to be specific. That means some form of budget which has to be in writing and include everything - especially those once a year bills like car insurance, school fees and the likes. You need a game plan for those annual bills as well. They are not a surprise, so be ready. Doing a budget also cannot be done over dinner or while watching TV. It will take a little time, thought and effort. Then, just like following a diet, you will need the discipline to follow it through and the results will be awesome.