Page 29 - Workbook1E

So go ahead—Toss out your Budget!
If you feel confined with no room to move then... toss out your budget and build a Spending Plan. As you’ve just seen, budgets often don’t work when they only review where your money’s gone after it’s too late. A Spending Plan gives you more freedom to achieve your lifetime goals. With your properly designed Spending Plan, you’ll have a roadmap for spending, plus a record of where your money goes. You’ll take responsibility for how your money’s spent—and be on your way to financial health.
Avoid Temptation... It’s like your diet. People know proper nutrition is essential for good health, but many still give into tempting junk food. Likewise, a spending plan produces stronger financial health and well being. Yet many people are side tracked by impulse purchases that divert them from their planned course. But you can choose to stay on your road to financial success.
2 Spend Your Way to Wealth
How you spend and manage your money is the key to building wealth. Successful people control their finances and account for their money. They plan ahead for needed cash, and prepare for unexpected situations. They pay themselves first to prepare for the future by putting the power of interest to work through savings and investments. To be successful you must organize your finances the same way businesses do, reviewing monthly cash flow, expenses, and income.
Smart Business... Can you imagine investing in a company that didn’t use a business plan outlining how your money will be used? What if the company didn’t have a monthly profit and loss statement reporting how the business was doing? No business can thrive or even survive for long without following sound financial principles, and neither can you.
The Value of Creating a Spending Plan
Access Education © 2013 25