Personal finance is more about behavior than the actual math. Many first time clients of mine claim they have a budget, yet they don’t follow it. That is how most people in America approach their finances. I propose Americans embrace a new concept in personal finance; it is called PAYING ATTENTION.
You don’t need an MBA in business or finance to be successful with money, you just need to pay attention. The best place to start is by doing and sticking to a monthly cash flow plan (a.k.a the budget).
The first step is to actually create one. Once it is in place, then it needs your full attention.
To do this, I recommend the following:
- If you are a beginner and prefer to use a smart phone or computer, set up your budget using Dave Ramsey’s Every Dollar online budget. It is free. Enter every transaction everyday into the software online or by smart phone.
- At minimum, balance your budget every two days. I have budgeted this way for at least five years.
- Meet at least weekly with your spouse to review the budget. This is important in the beginning, it holds both of you accountable and it requires you both to pay attention.
Just like anything in life that you want to be successful with, you have to pay attention. Waking up 30 years from now to discover that you are broke with little retirement savings, and having to live solely on social security is not a good plan.
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photo credit: Pay Attention White Background via photopin (license)
