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