Architects draw up plans that reflect everything which goes into constructing a building and a carpenter utilizes a set of those plans to build a house. Without the use of that house-building roadmap the finished product – in this case the house – would not meet expectations of its intended occupant. For example, the bathroom might get overlooked altogether, and nobody wants that, so it’s best to have a house-building plan which we know of as architectural drawings.
Similarly, Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications, because failure to draw up or utilize such specifications would result in mistakes ranging from the minor nuisance variety to the more serious tragic accidents.
We ordinary everyday folks may not be architects, carpenters or rocket scientists, but this doesn’t mean we should go blindly out into the world without an inkling of an idea about finances and without any plan whatsoever to deal with our personal finances. That wouldn’t be very smart of us, would it? So we need a plan on how best to handle our finances or, as it is referred to in some circles, a money plan.
Another name for a money plan is a budget and it is crucial to get us to our desired financial goals. Without a plan we will drift without direction and end up marooned on a distant financial reef or, in more direct terms, financial ruin. Not a pleasant destination for anyone! So if you haven’t taken the time to create a budget – or money plan – it may be a good idea to get started on one very soon (immediately?).
And if you have a spouse or a significant other, it is best that you make this budget together so you will both be on the same page with the family financial direction. Just sit down with your spouse and figure out what your joint financial goals are. You’ll need to include both long term and short term financial goals and then plan your route to get to those goals.
Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with. A budget should never be a financial starvation diet. That won’t work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.
Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the internet. Just use any search engine you choose and type in “free budget forms” in the search box. You’ll get lots of hits. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it’s something you can stick to.
Make sure to keep track of your finances (income and expenditures) by adhering as strictly as you possible can to the budget you create. Additionally, if you are not much of a numbers person your spouse might be the better person to keep the budget in-tact thereby benefitting your entire enterprise.