The most basic premise of a budget is so simple, but it is unwavering. It is always:
Income = Expenses + Savings
There is no getting around it. Millions of families blow it at the most basic of levels. They can't balance the simple equation and with that comes a self-perpetuating cycle of indebtedness, often leading to credit card debt, limited to no savings at retirement, or even bankruptcy. The hard thing about a budget is that there is no wiggle room. It would be like watching Lindsay Lohan explain why her ankle bracelet set of a "false alarm". All the awkward squirming is nothing more than worthless tabloid headlines.
In the coming posts we will explore each of the three variables at length and understand how to maximize the value of this equation. However, it is the fundamental nature of the equation which is the most important. It is a story of self control. It is a story of patience. It is a story of contentedness. A budget is purely about planning so that an individual, family, business or government may MAXIMIZE the utility or benefit of the hard earned dollars coming in the door (well, maybe "hard earned" is a reach for governments). To do so demands the utmost respect and commitment, otherwise you are just wasting your time.
If you or your significant other loves to shop 'til you drop, you better be prepared to slap the crap out of yourself or significant other (The Coco Lounge does not support or condone violence. No money gurus were harmed in the making of this post). If you demand expensive dinners but live on a McDonald's income, you better be prepared to eat Cup of Noodles five days a week. If you have to have the finest electronics, your shoes may very well be Velcro. A budget does not make you frugal, but it requires prioritizing and living within your means without exception. To "be a little bad" or "cheat occasionally" would be like climbing nine rungs of a ladder and sliding back down. It means making sacrifices for weeks, months or years and then watching that progress going up in smoke like herb at a Bob Marley concert.
So as we move forward on this journey together, the one thing to keep in mind is to be steadfast in your progress. As we grow this thing called a budget, like a rare and delicate flower in the midst of beautiful rainbows, we will find some flexibility, but for now, your budget is the chastity belt on the proverbial virgin.
Sincerely,
Coco
In the coming posts we will explore each of the three variables at length and understand how to maximize the value of this equation. However, it is the fundamental nature of the equation which is the most important. It is a story of self control. It is a story of patience. It is a story of contentedness. A budget is purely about planning so that an individual, family, business or government may MAXIMIZE the utility or benefit of the hard earned dollars coming in the door (well, maybe "hard earned" is a reach for governments). To do so demands the utmost respect and commitment, otherwise you are just wasting your time.
If you or your significant other loves to shop 'til you drop, you better be prepared to slap the crap out of yourself or significant other (The Coco Lounge does not support or condone violence. No money gurus were harmed in the making of this post). If you demand expensive dinners but live on a McDonald's income, you better be prepared to eat Cup of Noodles five days a week. If you have to have the finest electronics, your shoes may very well be Velcro. A budget does not make you frugal, but it requires prioritizing and living within your means without exception. To "be a little bad" or "cheat occasionally" would be like climbing nine rungs of a ladder and sliding back down. It means making sacrifices for weeks, months or years and then watching that progress going up in smoke like herb at a Bob Marley concert.
So as we move forward on this journey together, the one thing to keep in mind is to be steadfast in your progress. As we grow this thing called a budget, like a rare and delicate flower in the midst of beautiful rainbows, we will find some flexibility, but for now, your budget is the chastity belt on the proverbial virgin.
Sincerely,
Coco
My husband and I went $30 over our budget ($30 over our desired monthly payment) for my Infinitii. So now I cut his hair 2x a month at home and as many neck cleaning as needed! :)
ReplyDeleteI totally agree - budgeting allows you to live a lifestyle beyond what you could normally afford. I try to cut back on areas where I don't care as much - like bringing my lunch 4 - 5 days a week, so I can enjoy my manicure or starbucks or whatever random splurge.
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