CNN Money’s The Dubious Joy of Budgets
Sunday, July 12th, 2009Most people avoid creating a budget and fewer still stick to one. But it doesn’t have to be painful.
PLEASE SEE MY COMMENTS BELOW IN CAPITAL LETTERS. THIS ARTICLE WAS PRINTED IN CNNMONEY.COM ON JULY 6TH, 2009.
If you’re the type of person who always has plenty of cash, knows exactly where every penny goes and never has trouble paying bills, skip this chapter. You’re either too rich or too smart to need it. WRONG – I WORKED WITH A BILLIONAIRE TO SET UP BUDGETING BECAUSE SHE CONFIRMED TO ME WHAT STUDIES HAVE SHOWN, THAT WEALTHY PEOPLE WANT TO KNOW THAT THEY ARE SPENDING AND USING THEIR MONEY IN LINE WITH THEIR VALUES.
For the rest of us, unfortunately, (NOW THIS IS AN INSIRING WAY TO START A SUPPOSEDLY HELPFUL ARTICLE - NOT) making - and sticking to - a budget is the essential tool for ensuring that our money gets used the way we need it to. Even if you’re in the happy situation of having plenty of income, the homework involved in drawing up a budget can be instructive, since you may find that you are spending more than you wish on items like DVDs, electronic gadgetry or restaurant meals. DISGUSTING – YOU MAY FIND THAT THERE ARE MORE EFFICIENT WAYS YOU COULD BE USING YOUR MONEY!! THERE IS NO POINT IN STARTING OFF BY POINTING OUT THAT YOU MIGHT BE DOING SOMETHING WRONG – FOR HEAVEN’S SAKE THE BIGGEST POINT IS MISSED – THE OPPORTUNITY TO FIND OUT ABOUT WHAT’S REALLY IMPORTANT TO YOU AS IS CURRENTLY REFLECTED IN YOUR DAILY SPENDING!
Drawing up a budget is usually pure drudgery (OH THIS IS PLEASANT) enlivened only by the reality of staring your foolish spending habits in the face. (CAN I EVEN BELIEVE THAT THIS WAS PUBLISHED WHERE THOUSANDS OF PEOPLE CAN READ IT – WHAT ON EARTH ARE THEY TRYING TO DO?) Why do you have a luxury sound system if neither you nor your spouse listens to it? In fact, one of the chief impediments to budgeting is that most people would rather not know how they really use their money. I REALLY DON’T WANT TO GO ON AND HOPE YOU DON’T EITHER…BUT ALAS…
It’s bad enough to learn this kind of information on your own. It’s even worse when a spouse or significant other finds out, since it usually confirms his or her worst fears - and provides new ammunition for future “discussions.” UUGH – YOU KNOW THE BEST WAY TO STRENGHTEN A RELATIONSHIP IS TO HAVE HUSBAND AND WIFE DO THE BUDGET ‘RESEARCH’ WITHOUT JUDGEMENT FOR THEIR CURRENT SITUATION, THEN TO DO THE SAME FOR THEIR ‘IDEAL BUDGET’ AND DISCUSS HOW THEY CAN FILL IN THE GAPS – THIS ADVICE SOUNDS LIKE A SURE WAY TO GUARANTEE THE DIVORCE RATE INCREASES.
Take heart. Any spending mistakes (WHO SAYS THEY’RE SPENDING MISTAKES – THERE IS NO WRONG ONLY AN OPPORTUNITY TO DISCOVER THAT PERHAPS YOU NEED TO RE-THINK YOUR GOALS AND FIND A WAY TO EARN MORE IN ORDER TO LIVE THE LIFESTYLE YOU REALLY WANT TO LIVE AND ALREADY ARE) you’re making are probably common and not impossible to kick. Moreover, the bulk of budgeting’s pains are at the beginning. PAINS – THIS IS EXCITING AND FUN – IT’S INTROSPECTIVE AND A FABULOUS OPPORTUNITY TO LEARN ABOUT WHAT’S GOING ON, AND WHAT YOU CAN DO TO MAKE IT EVEN BETTER.
After you have a budget in place - and you’ve fine-tuned it with a couple of months of actual spending - tracking your expenditures becomes almost automatic.
If your boss at work were to ask you for an analysis of the department’s spending, you’d figure it out quickly enough. Budgeting your household should be approached in the same businesslike fashion. A variety of electronic tools can make the process easier. AND THE DICTIONARY DEFINITION OF BUDGETS IS ‘PLANNED EXPENDITURES AND A PROGRAM FOR FINANCING THEM’ AND THAT IS VERY BUSINESS-LIKE – BUSINESSES DO NOT OPERATE THE WAY THIS AUTHOR SUGGESTS – ANY BUSINESS THAT JUST LOOKS AT CUTTING BACK WITHOUT ALSO LOOKING AT HOW TO EXPAND IS NOT GOING TO BE SUCCESSFUL.
THIS AUTHOR IS OBVIOUSLY OPERATING FROM A SCARCITY, FEAR BASED PERSPECTIVE AND ONLY CONTRIBUTING TO THE NUMBER ONE FEAR PEOPLE HAVE AROUND MONEY – FEAR.
ALL-IN-ALL I SEE THAT ARTICLES AND MEDIA COVERAGE THAT CONTINUES TO PROMOTE THIS CONFLICTING NEGATIVE APPROACH IS ONLY GOING TO PROLONG AN ECONOMIC SLOWDOWN AND WORSEN THE ECONOMY BEYOND REPAIR.
BARRAK OBAMA SAID WE NEED A PARDIGM SHIFT TO TURN THE ECONOMY AROUND AND STARTING WITH A POSITIVE, PRACTICAL AND PERSONAL APPROACH TO FINANCIAL MANAGEMENT IS A PERFECT PLACE TO START.
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