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The Dreaded B Word
By Anita |
One can’t talk about personal finance very long before one has to mention the dreaded B word.
The word is so dreaded I don’t even like to use it. So I won’t!
I’ll use an alternate word instead: dashboard.
Would you drive a car without a dashboard? It’s technically possible, of course. You have enough driving experience that you could drive at close to the proper speed. You could refill your tank regularly to make sure you have enough gas. You could slide by for a while without any problems.
But eventually things will sneak up on you. You’ll leave your door ajar overnight and not notice, because there would be no dashboard light to tell you that the door is ajar. This will drain the battery and you’ll be in a jam the next morning.
You’ll get a speeding ticket because you’ll be going 38 in a 25 mph zone. Going 38 doesn’t feel much different than 25 so the police will catch up with you eventually.
Without an odometer you might forget when to take your car in for an oil change and damage your engine as a result.
A dashboard is essential for your finances too. Your income is the equivalent of the gas gauge. Your expenses are the speedometer. Your long term goals are reflected in the odometer. The temperate gauge measures your debt.
One reason many of us avoid creating dashboards for our finances is because it seems so exacting and stifling. Where’s the breathing room? Also, too often, a financial dashboard seems more like a wish list and you just hope and pray that you have enough money to cover all the expenses.
It’s important to know how much your expenses are each month. That is half the battle. The other half is creating a dashboard that puts YOU in control of the money each month, not vice versa. In my next post we’ll talk about that. For now, feel free to discuss the dreaded B word amongst yourselves and share what has or what hasn’t worked for you.
Topics: Budget |