How many feel emotionally
and financially overwhelmed through the holidays because of budgets? How many
feel the strain and drain after the holidays? How many financially plan and set
a goal to keep holiday spending simple? How many wished they had when the debt
of bill statement come in?
The internet
allows us to learn about money, income, bills, finances, and how to rebuild or
obtain credit. Creditable websites teach us how to manage our finances. New
skills can teach new ways to do old things. Many people never look at their old
way of doing things with their money. Many simply get comfortable with personal
income and expenses and the bills paid to never evaluate nor set plans with personal
money.
We can manage finances at work. We can
manage finances by telling our kids, family members, or others how to spend or
budget their money. But most of us, teach something that we do not live our
self.
Football has a plan of action before the players ever hit
the field of defensive and offensive plays they will make to attempt to a win a
game. Musicians, pros or novices; have a plan to create the sound they want to
share with others. Students have a plan of curriculum to follow and standards
to meet in order to graduate successfully. Businesses function every day with a
plan of action daily, weekly, monthly, quarterly, and annually.
Why do we allow
and watch other’s money plans and do nothing to have a plan of our income and
budget finances?
The simplest plan to begin money control is to put the
dollar and cents on paper of income and bills with necessities of gas,
groceries, household supplies, and entertainment costs.
By writing or typing, income and budget on paper; a
person is making time to stop and think of what they spend, before they spend
it. By having a consistent plan of income and expense, we can see our faults.
We can learn to improve those financial faults. We can create U-turns with our
money by due processes of an action plan.
I know this will
seem like outdated information. But there are many who do not write down
nor keep a paper trail of income received and income spent. They merely estimate,
without thinking ahead. If they make it to paycheck to paycheck, they feel
accomplished. That’s not the healthy way
to manage money.
They spend. They borrow from family or friends. They
spend. Government agencies or nonprofit organizations pay their bills for
utilities, housing, and other monthly necessities when they fail to manage
their money.
This is not looking down at nor saying anything bad about
those who do have true unpreventable emergencies. These agencies are there to
help. But for each person they help that does not manage their financially
wisely, they are using resources to help those who truly need it. This is
simply discussing the income and budgets of those who fail to control their
expenses.
A money action plan
can turn our money situations around. How? Because we then are forced to
face the truth of how we spend our money. We are faced to face the truth of our
income and the expenses we splurge on.
Each time, income
is received; it should have a plan on paper before the first penny is spent.
Each bill should be the first priority to pay and not the last. Each
entertainment should be on hold or delayed until the bills are paid. Lifestyle
should be adjusted to the limits of the income received.
For decades,
Americans have been filing bankruptcy as the only means of financial escape and
relief to debts created that are larger than their incomes can pay. Not all
cases of bankruptcy are failures to budget with lay-offs or natural disasters;
but many are. Vehicle repossessions and
foreclosures usually occur due to financial neglect of income and expenses. This
is financial truths that paper trails reveal.
By creating a plan
of action on paper for money, we see the truth of who we are and how we spend
our money. It is easy to sign on a contract to state we will pay the debt
when the monthly payment is what we can afford. However, by failing to have a
plan to pay this debt off earlier; we simply get stuck with a bill that evolves
to a situation that we cannot nor will be able to afford. Why? It’s simple.
A contract is the
beginning of something. The end pay date will be the end of this debt when
all payments are made. However, if most would calculate the end of payment, as
scheduled; they will realize the price they are paying for the credit is not worth
the value of the item they are financing.
The majority of
the richest class of Americans do keep America going. This is the truth of our democracy. It is their investments and
wise financial plans that keep our country in operation. The working class of
Americans have jobs because of the efforts, finances, labors, and plans of
those who created financial actions with their incomes and in their budget plans
to follow them to gain the maximum benefits.
Most of us, cannot compete financially with
the incomes of others nor should we. We must plan and manage within our
incomes to set a plan that works for our situation.
If we want to gain
credit with lower finance rates, a plan must be created to make this happen. If
we want to purchase a home, a plan must be created to afford a home on the
income we have now and have a plan to pay it off earlier than the due date. If
we want to purchase a vehicle, we must have a plan when signing the contract to
pay the loan off before the final payment due date.
One should view
paying credit off as a financially mature challenge. An accomplishment to
achieve to pay it off earlier. A goal to reach that will pay the debt off
earlier with the least of amount spent toward financing.
Many Americans
receive income tax refunds. However, many Americans do not have a plan for
this money they receive. Do they save their income tax refund to divide the
amount by 12 to supplement their income as spending money through the upcoming
year? Do they use this money to pay extra principle toward their mortgage or
vehicle contracts? How can a money plan for income tax refund help a person
achieve a greater reward of their money?
Example: $2400
income tax refund. $1200 in savings account. $1200 in checking to add an
additional $100 month income to the next 12 months until filling income tax
again. Next year, when filing; do the same thing. Use the $2400 to pay on
mortgage or vehicle loans. Do not use income tax refund money as spending
money. Focus on the debt that needs paid first. Bills first. Necessities for
home living. Then, money that is left is to be spent outside the home in
entertainment and luxuries.
Most spend overtime wages and income tax
refunds as free or extra money. This is not free nor extra money. Many
hours and government obligations make these monies happen because of the work
you do. Don’t you want your money and income and your labors to do more
financially for you? You control this. Don’t you want a larger plan of action
with your money? Learn to let your money work harder for you by creating and
following a plan that makes good personal cents to create financial business
sense for your income in your home.
There is not much
difference of plans in business finances and personal finances. You have to be
willing. You have to be dedicated. You have to be persistent in creating a plan
and following a plan. Never being afraid to learn a new plan. Never become so
stressed about income and money that you cannot find a solution or learn a new
way to solve income problems.
The greatest hidden asset about money is that if you
control money, plan money, and spend money with a course of action; you’ll
realize just how repairable, invest-able, and stress-free money can be when
doing the right thing – the first time – with money.
