Crackerjack Greenback Prudent Advice for a Prosperous Future

December 29, 2008

Stop Driving Through Personal Finance Fog

Filed under: Goals,The Basics — Paul Williams @ Crackerjack Greenback @ 4:00 am

Through the thick fog. by redjar on Flickr       I had to drive through some thick fog Saturday night on my way to visit some friends. I realized I hate driving in fog (especially at night). Why is it so bad? Simply because you can’t see what’s ahead of you. It’s difficult to prepare for obstacles in the road, and you can’t see the potholes until you’ve already hit them.

       Trying to manage your finances without a good plan is a lot like driving in thick fog. If you don’t have a budget and track your spending, it can be very easy to spend too much money and forget about irregular expenses. If you don’t set specific goals for yourself, you have no destination. You’ll end up wherever the road happens to take you. While that can make for an exciting road trip, it’s not really the kind of thrill you want to have in your personal finances. Without a budget and clear goals, you can’t prepare very well for the obstacles ahead and you’ll often hit some big potholes that can send your finances reeling.

       Want to improve your finances next year? Focus on the basics first. Set some clear and specific goals, and figure out a realistic budget you can stick to. Then track your spending using whatever method works best for you. (The next logical step would be to build up an emergency fund. It’ll make smooth driving of those potholes I mentioned earlier.)

       These are not exceptionally difficult steps to take, but they do require time and commitment. Dedicate yourself to setting your financial goals, making a budget, and sticking to it. And stop driving through the fog!

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