So today is October 4th.. That means that you completed your September month end (gave yourself a pat on the back for doing a good job), and started your October budget! So the question is then…how did you do last month???
If you’re like me, you did great! You’re well planned, and categorized your spending in advance and had an idea what you were going to spend for the month, which means that you also had a fairly good idea how much you were going to save as well! Even if your income is variable and fluctuates each month, you know what your fixed expenses are, so to some degree you have a fairly consistent idea of how much you’ll allocate and to where.
If you didn’t have a good month, why? What stopped you from saving enough and putting your money towards your financial hopes and dreams? Was it because an unexpected expense popped up that required immediate attention? Or was your passion for your future financial well being waned by some shiny immediate “need” or “want” that you just couldn’t do without?
If a major expense popped up and it had an impact on your monthly budget then it’s likely that you don’t have an emergency fund in place. These funds are critical just for that reason, so you don’t pause your financial goals when life happens. Life has a way of sucker punching me in the face, and when it has, each time it taught me a valuable lesson….always be prepared!
If you did have an emergency account, then good for you! You know how important having a safety net can be during unexpected financial times. Keeping your monthly budget on track no matter what takes place is key to moving forward long term. Expecting things to happen and being prepared is the key to embracing long term financial success.
With it being near the end of the year, are you well prepared for the remaining few months, and have you taken into account the holidays? Thanksgiving, and Christmas are soon approaching and there will be added expenses to consider. Take some time to account for all that you’ll need and put aside that money in advance to make sure that you’re still following your budget plan.
Mr. 1500 days is an incredibly resourceful site where you can find some mind boggling posts with calculations showing the power of savings and compounding interest (here, here). Foregoing your long term savings plans for short term pitfalls will end up costing you dearly if you don’t wrangle your savings discipline into line! The importance of saving your money and investing it regularly adds up significantly overtime! Time + Savings + Time + Savings + ………you get it = Financial success!!!!
Keep focused from month to month, be well planned, and have big goals. You might not be able to see it right now, but that small purchase that you curbed yourself from getting will payoff more than tenfold in the future! Your total FInancial well being depends on it!
