About a year ago, I was shopping for a new house, my wife and I placed our home on the market because we wanted to move to a different part of town. As we were looking on the internet for a new home and going to multiple showings. I began to think about the physical structure of the home and how it was built. Not to go into too much detail, but I began to think about the plan that was created and followed to build the home. I quickly realized that during this process it was nearly impossible to build a home without a plan.
The home buying process brought me back to my time as a beginning financial advisor in 2008. Previously I met with potential clients to discuss building their financial house and the foundation of that house was a blueprint. But now as I think of it in more depth, the blueprint to any financial home would have to be a budget aka a spending plan.
The spending plan is key because it helps to make any financial wishes into actual financial goals. The spending plan/budget puts the power back in the hands of the person rather than hoping goals will miraculously occur. Personally, I was introduced to budgeting as an adult. I always had financial goals and hopes, but never did the work to make sure they happened.
When I started budgeting, within the first three months I was able to pay off over $5,000 in debt with a modest salary. This success made me crave more knowledge and information on reaching my financial goals. Along with paying off $5,000 in debt I was also able to save over $3,000 for emergencies and incidentals.
Everyone has had their own experience with money and I realized when I discuss spending plans with people they have tried it once or twice before. Some of the responses included the spending plan was too restrictive and they couldn’t enjoy life, while still pursuing their goals. Honestly, I understand this because I felt this way starting out, but once the results began to happen the idea of overspending and under-saving or not planning seemed like horrible options.
“A spending plan will turn your financial hopes into financial goals, because you will possess the tools necessary to reach them”
If you have had bad experiences with spending plans in the past, it is time to rethink and give spending plans another shot. If you have never tried a spending plan in the past, this could be the cheat code you need to reach the next step in your financial goals.
Remember you would not build a house without a blueprint, so don’t try to run your financial life without a spending plan.
If you would like assistance with building your spending plan or need someone to help walk with you through the process, I would be excited to be your coach.
If you would like more information, email me at coaching@tysonmalone.com.