Everything indicates we’re moving into uncertain territory as the clock tics on. After the Wall Street meltdown, its repercussions are affecting most of our daily activities. Many companies are feeling the squeeze and are closing doors or asking for debt protection. The last company that asked for Chater 11 bankrupcy protection was Circuit City. General Motors, Ford Motor Company and Chrysler are currently trying to makes ends meet. They are willing to go all the way to the White House with their hats extended.
During these difficult times it makes a lot of sense to plan ahead to avoid unpleasant surprises. One of the best planning tools is a budget or a spending plan whichever sounds better. In this case, semantics doesn’t make a difference.
I know that the word budget is a bad word in the English language, because it restrains your actions. It limits your spending freedom. People hate budgets because budgets seem confining. Like diets, budgets are forever begun with grand intentions, only to be quickly ditched when spending restraints seem too much like a yoke preventing you from disbursing your money as you like.
But in today’s environment, where unemployment is on the rise and where consumers are hung over after a multi-year credit binge, a budget is the very tonic many households need. It doesn’t have to be painful if you understand one salient fact: You control your budget; it doesn’t control you.
If you want to play it safe and guarantee that there will food on the table when your family is hungry, I strongly recommend you start reading on how to prepare a budget or a spending plan. You’ll love youself later on when the tough gets going.
I’ve selected a well-written article by Jeff D. Opdyke dubbed, “How to Make a Spending Plan” that will help you get started. It provides you with the general guidelines in the preparation of a spending plan. Please read it, and if it sound logical, go ahead and plunge into the safety net. Your family will love you for it. Good day.
Source: How to Make a Spending Plan – Wall Street Journal
