“For wisdom is a defense as money is a defense, But the excellence of knowledge is that wisdom gives life to those who have it.” – Ecclesiastes 7:12
It all starts with a plan. A savings plan
Begin with determining what is a NEED and a WANT.
Make a list of the things you would LIKE to have. Then ask yourself, will these things really satisfy me? Or, am I searching for something deeper? Are they obtainable?
Next, make a list of the things that you NEED. Break down the list into categories based on urgency, such as Immediate, Short-Term, Long-Term.
Immediate = with the next 6 months.
Short-Term = the next 12 months.
Long-Term = 18 months or longer.
Is everything on the NEED list a real need or should something be moved to the WANT list?
Have you considered everything that might come up in the future that would have an impact on your finances?
Okay, with this simple exercise you now have a basic savings plan. You know what you need and when you need it. Post this plan in places where you will see it, like the fridge or your bathroom mirror. Review it before and take it with you when you go shopping.
