| Have you ever built your own house or | | | | family and remember, to be successful |
| added an extension to it? If you have | | | | all of you will have to be happy with |
| you wouldn't expect your builder to | | | | the final result and feel like it's |
| build without a set of house plans, even | | | | something you can stick to. |
| for the smallest of extensions. If he | | | | First, if you have a partner or a |
| did the kitchen might get overlooked | | | | significant other, you should make your |
| altogether or have your water supply in | | | | budget together. Sit down and work out |
| the lounge or day room. A plan is | | | | what your joint financial aims or goals |
| essential for any builder. | | | | are - long term, medium term and short |
| If a NASA rocket scientist began the | | | | term. Don't just throw ideas around. |
| construction of a new space rocket | | | | Work out what you really want to happen |
| without a detailed set of design | | | | and the cost. If you want to retire at |
| specifications how high do you think it | | | | 50 what will it cost? |
| would fly? Do you think it would get off | | | | Then plan your route to achieve those |
| the ground? Or do you think Congress | | | | goals. Every journey, financial or |
| would pull the plug on all that spending | | | | otherwise, begins with one step and the |
| if they did it without any plans. Of | | | | first step to attaining your financial |
| course they would. | | | | goals is to make a realistic budget that |
| If you went to your bank wanting to | | | | both you and your family can live with. |
| borrow for a new business what would be | | | | Unless you are really heavily in debt |
| the first thing they ask for? A business | | | | and have no option a budget should never |
| plan. | | | | be a recipe for financial starvation. |
| Even the most mundane activities benefit | | | | That won't work in the long term. Break |
| from planning. Going to work every day | | | | it down into detailed allowances but |
| you have a plan of how to get there. OK | | | | plan reasonable allowances for food, |
| the plan may be in your head but you | | | | clothing, housing, utilities and |
| don't go out of your drive and take | | | | insurance etc. |
| whatever road takes your fancy. You'd | | | | Then set aside a reasonable amount for |
| never get to work. | | | | entertainment (including drinks and |
| Yet most of us organize our lives | | | | smokes) and the occasional luxury item. |
| without so much as a thought or an | | | | After that debt repayment and savings |
| inkling of an idea about our finances | | | | should always come before any further |
| and without any financial planning at | | | | spending or saving. |
| all. It is the only are of peoples lives | | | | Once you've worked out how much you need |
| where planning is thought irrelevant. | | | | to live on each week or month then work |
| How often is your month longer than your | | | | out your income. Include everything you |
| pay packet but when you try to figure | | | | can depend on. If you get tips regularly |
| out where it went you have no idea? | | | | then add them in but if it's only the |
| Not very clever of us, is it? | | | | occasional tip ignore it. Don't plan on |
| You need a money plan. A money plan is | | | | an annual bonus - it might not arrive. |
| normally called a budget and it is | | | | Work out what you have spare. Then work |
| crucial to have one for you to get to | | | | out how to save it. Don't put all your |
| your desired financial goals. | | | | spare money into a pension when you have |
| Without a budget you will be financially | | | | debts to pay. Pay your debts and reduce |
| drift without direction and end up | | | | the interest costs then save where it |
| marooned (broke) on a distant financial | | | | remains accessible. |
| reef. Your dreams will remain dreams and | | | | Even a small amount saved will help you |
| you'll spend your life wondering "what | | | | to reach your long term financial goal |
| if". | | | | and if you start saving a small amount |
| So how do you set a budget, a financial | | | | early it makes life much easier later |
| plan? Get yourself a budget planner. You | | | | on. |
| can find many budget planners on the | | | | Planning for the future is not difficult |
| internet by typing into your favourite | | | | but to be successful can involve |
| search engine "free budget forms". | | | | difficult choices. The earlier you make |
| Print one out and work on it with your | | | | those choices the easier the journey. |