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Spending Pre-Plan

Over the years, I’ve been able to handle the heat of the moment, and also know when I need to walk away and come back another day to gain some perspective.  After a long time of learning through experience I’m more comfortable pulling back, getting back to my “home base” and figuring it out. The challenge with this “learned over time”, position is the time it takes, and the lack of planning I do on the front end.

The best example of this is the use of credit cards.  I’ve had a long history with credit cards, beginning in my late teens, early 20’s living on my own.  It’s been years since I’ve had any credit card debt, but I haven’t taken my financial management to the ultimate level… cash.

Cash is a “pre-planning system” instead of a sit down and figure it out later system.  If you want to give yourself $200 per week to use on discretionary spending and you only use cash for your discretionary spending, you can make it impossible to overspend by only keeping $200 on hand.  That’s a pre-planned spending system. If you only keep cash on you and not credit cards, that’s a pre-planned spending system without a fall back. Keeping a credit card on you, even if you have cash and a pre-planned spending system, makes it too easy to blow it now and deal with it later.

Comfort can be taking the info, and going back to a quiet place and figuring it out.  Unfortunately, it’s no longer efficient and the time wasted by doing this cost money. The benefit to the experience of doing many things before, is that you don’t have to think about it or process it, or take it back to the office to think about it.  The benefit of experience is that you know what to do – Just Get It Done.

Fast, light and flexible, that’s what saves time, makes money and gives you the flexibility to do more things.

Be Good,

  • Chris