A life without love is like a year without summer. Swedish Proverb
The first long weekend is now a memory and although the weather here in Port Perry, Ontario, Canada is less than desirable, we are moving into our favourite time of year, summer! With that comes bbq’s, the cottage/trailer, swimming, boating, summer camps …. bring it on! But what about the cost of doing all of these things. Is it in our budget? What budget? LOL
In the workshops I facilitate, I always ask students to write down 3 goals they want to achieve from my course. The most common goal is to learn how to create a budget…the perfect place for us to start!
The key to creating your budget is the measurement you use. The best measurement to use is monthly. Remember in school, we were taught you can’t compare apples to oranges? Most expenses are monthly and those that are not can be easily converted. So write down all your monthly expenses; day of the month it’s due, expense/bill name and amount (including cents). Do not estimate. You don’t want any leeway. Then add it all up to find out what your lifestyle costs each month. Voila! This monthly snapshot of your expenses is a big part of your plan.
A budget is no doubt, the most essential tool for effective money management. Therefore I have upgraded the name to …the Master Plan. Hear the echo? Sounds much more important right? It is THAT important. Doing a Master Plan allows you to have an accurate and informative snapshot of your finances, at any time. However it’s not finished yet. To avoid information overload we will finish the Master Plan over my next 2 blog posts. If you’re eager let me know and I’ll write sooner than later. I have the time 🙂
…Because life happens. And as it does, the last thing we need is money stress sucking the life out of us.
Cheers from Janet Ries, RSSW
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