A builder uses a set of house plans, or blueprints, whenever he builds a house or office building.
Rocket scientists would never begin construction on a new booster rocket without a detailed set of design specifications.
Yet most of us go blindly out into the world without an inkling about finances, and without any plan at all as to how we’re going to achieve our lifestyle goals in the short term and long term.
A BLUEPRINT FOR FINANCIAL SUCCESS
The most financially successful people have a blueprint or plan, called a money plan is called a budget, to help keep them on track in both the short and long term when it comes to achieving their financial goals.
Without a plan, they would spend whatever they wanted, whenever, and basically end up living hand to mouth. Worse still, they might end up running up a great deal of debt, spending more than they earned, until they couldn’t even meet their credit card minimums any more.
THE CURRENT ECONOMIC CLIMATE: CREDIT CARDS ARE NOT YOUR FRIENDS
Credit has been easy to come by for the past few years, but in this current economic climate, a lot of credit card companies are pulling the plug on consumer credit. They might also be inflicting much heavier penalties on anyone who misses a payment, or increasing the interest rate, or, in some cases, even changing the payment date in the hope that you WILL make an error.
They are also making a great deal of money preying on people’s fears of credit card fraud, rather than taking the sensible steps of trying to cut back on credit card fraud in whatever way they can.
So credit cards are not your friend, and yes, it may be tough to get along without them, but your budget will be a lot better for it in the long run. Your budget is the one way to try to make sure you don’t end up on the rocks of a financial disaster. Or, if you think you’re already in danger of running aground, it can be the action plan that helps get you out of danger with persistent effort.
Continued in: A Budget: Your Ultimate Financial Management Tool Part II
