The Importance of Budgeting

With the New year here I figured it would be good to start with something positive and helpful. As you may have guessed from the title I am going to preach on budgeting. I say preach, because most people don’t want to do it, and don’t want to hear about it.

Budgeting does not have to be onerous. You just need to spend some time (no pun intended) tracking your income and expenses, and then figure out where you are spending too much. It is really that simple. The thing is most people are oblivious as to how much they spend. Those double-doubles at Tim’s and Starbucks, and the lunches and Dinners out, really add up to a lot of money. The ultra-super-duper internet and cable / satellite packages, and newest cellphone every year also add up. Cigarettes, chocolate bars, bottles of pop and slurpees, I could go on. We haven’t even touched on bigger things like clothes, shoes, kids stuff, video games, dvd’s, music downloads. Everybody wants your money, and they make it so easy that you don’t even think about it. I mean Itunes goes straight to your credit card without a pin or signature. At $1 a song it doesn’t take long to add up.

I love what I do, and I thrive on being able to help people. The saddest part of my job is seeing folks who have gotten buried in debt, lost their job, etc., and now can’t afford to pay their bills. That said, most people (not all) don’t have a revenue problem, they have a spending problem. The problem is that most of us are oblivious to how much we spend. This problem is further exacerbated when you have two people (spouses usually) and only one knows what comes in and goes out every month. If you have ever had what I loving call an OSM (Oh Shit! Moment) when you opened your visa bill or looked at your bank balance and were not prepared for what it contained then you really don’t know how much you make (take home after taxes) and probably have no clue about what you actually spend each month.

I will stop badgering you now and end by simply stating that if you want to have financial success in life (retire comfortably, pay for the kids university, move to Palm Springs for the winter) then you have to budget and plan. I want to see you in my office with a tan and smiling after returning from California, not crying because your bills are higher than your income.