Even though I missed the original show "The A-Team" by a few decades, I am a huge fan of the 2010 film adaptation starring Liam Neeson, Bradley Cooper, and others.
Neeson's character, Hannibal Smith, is known for the line, "I love it when a plan comes together." Fortunately, a plan isn't just meant for elite units of the U.S. military. All of us can (and should) have plans when it comes to our money.
Out of control spending is what causes many of our financial woes. How do we get our spending in check? The answer: having a plan.
Having a plan for your finances looks something like this:
"I get paid on the 1st and 15th of every month, so I am going to make a list of all the things I want to buy and prioritize them by when I really want or need them, or if they're bills, when they're due. I will then assign them dates I will purchase them based on when I get paid."
For example, I receive a paycheck every two weeks. On those Fridays that I get paid, I pay bills, buy things I want (like a new phone case or book bag), save, and give. This Friday I will receive a paycheck. I know that my Visa bill is due on the 15th and my next paycheck after this Friday will come on the 17th. So I know that I HAVE to pay my Visa bill this Friday. However, my American Express bill isn't due until the 18th. I can wait until my next check comes through to pay it, since I don't want to have so much come out of my account on the same day. After paying all of my bills and buying the things I "want", leave enough (and then some) for your "needs" the next few weeks. By needs, I mean food, gas, etc; the things that aren't necessarily consistent from month to month.
You might ask: How the heck am I supposed to keep up with all this?? Well.. go read "when you don't have time for time management" and you'll learn how to set up calendar reminders when all of your payments are due. It really is simple, it just takes some time to set up everything initially.
I prioritize my money by giving, saving, spending, and cash withdrawals. Those are my categories. Doing this has caused me to become an active money manager. I love having nice things (this summer I have bought a new iPad and MacBook) but I made a plan back in late April as to when I would purchase them. It took a lot of patience and time, but it was worth it in the end.
As always, leave a comment with any suggestions or questions you might have
- swj
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