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