Budget Planning to Match Lifetime Goals

Does your family utilize one of the most important life tools?  Are you aware that this tool assists and manipulates your life goals and desired achievements?  I am sure you are now wondering what could be so powerful.  This most powerful tool is called a Budget, in other words, a finance plan that you (and spouse, if married) set to attain desired wants and needs.

To begin using this tool, start by deciding what your life goals are.  Some will be short-term (going on a vacation in 4 months) and others long-term (like having enough money set aside for your children’s future 12 years from now).  Write the goals down, noting beside each when you expect to achieve them.

Next, do an evaluation of your expenses so that you have a clear picture of your finances prior to creating your budget.  Are you actually aware of where all of your money goes?  Most people answer yes, but let me assure you that you indeed probably DO NOT really know unless you track every expense.  Get yourself a notebook or set up a spreadsheet to track expenses in.  For one ENTIRE MONTH, track all expenses and record every penny spent.  This means everything!  Did you write down the quarter you spent on the bouncy ball that your daughter has already stopped playing with an hour ago?  If not, then remember, you need to write down every expense.

At the end of the month, add up all insignificant expenses.  This amount may very well astound you.  Find one item you could have lived without and multiply the expense by 60.  This total represents the amount spent on this “unnecessary” item over a course of 5 years.  Imagine how much you could have saved plus the interest.

There are a lot of ways to minimize spending.  For example, instead of buying an expensive $4 coffee every morning on your way to work choose instead to only buy them two mornings out of the work week.  You can drink regular coffee at work for a much lesser cost and maybe even for free.  Let’s see how this savings will really impact you and your family. 

5 days a week, $4 a coffee = $20/week, $1040/year & $5200/5 years 
Wow!  A $4 coffee costs over a grand a year!  Now let’s see what 2 a week can save.

SAVINGS OF $624 a year and $3120 over 5 years

These small expenses that we believe don’t impact us actually undercut any financial success we strive for.  The goals you decided on will give you added motivation to cut these little expenses out of your day.  Posting these goals will give you more reasons to start on your financial success today.

Now that you know what items you will be cutting out of your life, your budget may be more reasonably figured.  Be cautious not to financially stunt yourself because if you do, it will be difficult to stick with.  Thus creating budget abandonment, then you’re back where you started.  Go to the Black Business America download area and get a budget form to use.  There are two very extensive budget planning guide there.  You should now have a complete picture of your financial family expenditures.  Sit down and fill this out completely and accurately. 

You and your family are now motivated towards working together for common life goals, creating a much more positive environment in your home and life.