Economy is half the battle of life; it is not so hard to earn money as to spend it well.
~ C. H. Spurgeon

According to Forbes.com, on the average, American households make $54,453 a year before taxes and spend $43,395 in expenditures, leaving approximately $11,000 of discretionary money, less the 8 - 10% you give FICA an’ ‘em to supply the social insurance system, the estimated 25% in federal, state, and local taxes withheld to pay your share in sustaining the government, and any allowable deductions (medical expenses, charitable contributions, interest on loans, etc.). At the end of the year, you may have less than $6,000 left to play with, about $500 each month. If you subtract your tithes, savings, and maybe eating out or detailing your car, you may have about $1.67 at the end of the month.

Are you spending well?

A recent National Foundation for Credit Counseling survey of Americans’ budgeting and spending habits found that just 40% of us use monthly budgets, you know the thing that helps you know the amounts of money that currently come in and go out of your wallet; the thing that keeps you from wandering around wondering why you make so much but have so little? If you don’t have a monthly written plan of how and where you’re money goes, you have little to no control over your money and, ultimately, even your $1.67 goes carelessly out the window.

With a budget, you can see exactly how much you spend out each month and you can determine whether you’re spending too much for something, not spending enough for something else, or whether a thing can be cut completely. Having your expenditures before you makes it all real, sometimes too real. But hopefully the realness will cause you to make changes that will net you more than $2.00 at the end of the month.

The realness – do you really need all those cable channels? How many features do you need on a cell phone? Do you have to run the washing machine and dishwasher at the same time? Wouldn’t it save more costly energy to dry your clothes in the evening as opposed to the middle of the day? Does your dog have to eat the Science Diet® dog food? Will another pair of black shoes complement your feet any better than the pair you bought 2 weeks ago? Could you go to the grocery store only 1 time in 2 weeks; must you go every other day? If you bought dinner food at the grocery store, why would you stop at the fast food joint for dinner? That coffee maker you bought last year was supposed to replace your daily Starbuck’s visit every morning, wasn’t it? Why do you give in to your kids’ pouting each time they see the “teaser” toys and candy at the register? The late fees, don’t they cost more than the actual monthly charges? And, why would you pay the bank $35 - $40 to pay your bounced checks? Why not just stop writing bad checks?

Or, you can keep running from your money.

Did you know that not managing your money can cause depression and lead to stress that can compromise your immune system and perpetuate disease?

Manage your money so we can continue this written relationship.

Imagine all the money you could save and spend better if you would just develop a plan. Today, your challenge is to try it.

Sadiqqa © 2007