There's More To Life
So it's important to always remember your 'Why'
I was having a conversation with a prospective business purchaser. Discussing just general chit-chat before we got down to business talk. We were talking about 'toys' i.e. cars, boats etc., basically anything material that provides enjoyment. Now I am not really a 'car guy' nor am I anything much of a fisherman. Traditionally speaking I know enough about accounting, economics and finances to know that a car, no matter how nice (i.e. expensive) it is, is just an expense, although I really do love my car (thank you Lexus). Similarly like fishermen who really love their boat even though it is also another pure 'expense'. As we finished the chit-chat and started talking business, I said the throw away line; "Well you've got to spend your money on something…"
Later that night I was thinking more about that line and it really stuck with me. I'm not really a specific 'goals' person, I'm probably more of a 'vision' person which I realise as I type this, is pretty much the same thing. Due to our background being in accounting and finance my wife and I have always been pretty good with budgeting and saving. I like to think we're working towards our vision. We're by no means masters and we regularly spend (waste) more money than we should and the Bank of Mum and Dad has always been very generous to us. But we very rarely go without anything that we truly want. Of course I would love a Maritimo to spend time floating around Maggie or even Hamo, but until then we have our friends' trusty getabout.
There is no right or wrong when it comes to finances, goals, visions, whatever you want to breakdown elements of living. There is however, the best way for you to live your life; whatever makes you happy. Your 'Why'.
For you it might be having nice things. It might be helping others. It might be watching others prosper, spending time with friends or loved ones. It might be achieving awards. It might be being lazy, lounging by the pool?
Whatever it is, it will require money, plain and simple. Life is not cheap. No matter how simple your plans are, you need to be able to afford to maintain them not just now but well into the future. So you can't just live for now. Actually, let me rephrase that - you need to live in the present (and BE present) but also keep one eye focused on the future.
This is why budgeting is such a massive skill to possess, and luckily it is a really easy skill to learn.
In simple math terms: Savings = Income - Expenses.
So to influence your savings you can either increase your income (earn more) or decrease your expenses (spend less). It's not rocket science.
So why is budgeting important? You can't buy happiness, right? We have all heard that saying and it's very true. But you also can't survive on happy thoughts and good intentions. As mentioned earlier, life isn't cheap. So, you can't take your money with you. You've got to spend it on something and you can't just live for today. Simple right? I do mean that tongue in cheek - it's not simple at all, that's why it is important to remember your 'Why'.(Originally published DUO Magazine April 2018)