Budget
Because nature abhors a vacuum, everyone needs a budget. Even if you have no income at all, having a budget helps determine how much income you need to develop in your business and career pursuits; and once you attain your desired income, your budget can help you manage it consciously, intentionally, deliberately, and responsibly.
The budget breaks down annual benchmarks from the Lifetime Savings Plan into monthly goals, and factors in all the other things like
routine expenses, short term savings, debt service, taxes, charitable
giving, income seasonality, and more.
Because
there is no such
thing as an "average month", we work out budgets month-by-month, using monthly averages to create short-term savings plans that regulate irregular expenses, kind
of like an internal Escrow account.
In all humility and candor, after twenty years of research and development it may be honestly said that the Making End$ Meet budget template is the best available anywhere.
Dispelling Budget Myths
Myth
|
Reality
|
Budgeting is not sexy.
|
Budgeting is sexy because it can relieve anxiety and encourage hope.
|
The "average month"
|
There is no such thing as an average month. Work out budgets month-by-month to identify and cope with irregularities. Average computations support coping strategies, but the Average Month Assumption is discouraging, misleading, and spurious.
|
To be able to budget, I must have predictable, stable income.
|
To have a predictable, stable income, you must develop a budget to define, guide, and focus your career and business pursuits.
|
To be able to budget, I must have an income.
|
To have an income, you must develop a budget to define, guide, and focus your career and business pursuits.
|
The budgeting process begins with income.
|
The budgeting process ends with income.
|
My budget must fit my current, actual income.
|
One purpose of a budget is to set income goals. It defines success. It indicates the cost of the life you want to live, versus the life you've been living. Within the budget, it's vital to sub-total "Needs" or "Essentials" to define the minimum income necessary for survival; but the total budget usually is, and ought to be, more than current, actual income.
|
Budgeting is only for "rich people" who have money to budget.
|
This is a cart-before-the-horse myth. Which comes first: the house, or the blueprint? |
Budgeting is only for "poor people" who must cope with scarcity and constraints.
|
A sure way to lose wealth is to "wing it" without a budget.
|
Budgeting is negative. It's all about limits, constraints, and "no's."
|
A budget is a positive, definite plan. It's all about freedom, possibilities, and "yes's."
|
Budgeting is crass, materialistic, and un-spiritual.
|
Budgeting is spiritual because it liberates the mind and the soul from constant preoccupation about money; it "tames" the "money-monster." Undeniably, money can also be a tremendous means of loving and blessing.
|
Budgeting is for lower life forms: left-brained, obsessive-compulsive, nit-picking, anal-retentive control freaks.
|
This is self-defeating bigotry. Budgeting is for everybody.
|
I am not a "detail person." I am a "people person."
|
Everyone is detailed about the things they care about. One of the most loving things you can do for the people in your life is get real about your economy by doing your budget. Need help? It's available!
|
"Me and paper, we don't get along."
|
Hope springs eternal. 
|
|
