Back to Basics

I've always been fastidious about my personal finances.  For as long as I can remember, I have kept a monthly budget in which I tallied my household expenses, debt and savings.   Nobody taught me to do it, or even suggested I do it, but I just did.   Through more challenging years, this budget helped me feel more grounded.  It assured me month after month I was, in fact, getting somewhere.   

My goal was always to save enough to buy our next home.  With the baby and the move and the all around busyness of my day-to-day, I have recently got away from my budgeting.   While I always keep track of it mentally, the practice of updating the spreadsheet is good form and I need to get back to doing it. 

Recently, I've been enjoying the popular best seller, The Millionaire Next Door.  I'll do a write-up with my summary and conclusions once I finish it, but for now it struck me as interesting that the author reminds us, “Planning and controlling consumption are key factors underlying wealth accumulation … Operating a household without a budget is akin to operating a business without a plan, without goals, and without direction.”

Today I'll be getting back to basics.  Back to my household budget plan and back to a new "5 year plan".   It not only is effective in helping me achieve my goals but it provides me with a strange sense of calm too.  

(image)