So far, we’ve established some key things to keep in mind when doing your budget, planning for your future, retirement, college for kids, etc. Today we’re taking a different turn on the whole finances game.

Step Seven…We’re going to pay ourselves first. That’s more than just a sentence. Read it again if you must but it’s important to put yourself first, once you learn how to do this it’ll be so much easier to plan the rest of your financial life.

When you plan your payperiod spending, and by this time you should have.. take 5 - 10% out of the budget for yourself. Savings for yourself. Don’t stick it in your pocket and go buy a six pack and catch a movie this weekend. Have you been needing new clothes? Want an Ipod? Set a short term goal, something that you can reach easily within say, three to four weeks. That should cover at least two pay periods.

Set aside a little money and stick it a drawer or something, out of sight - out of mind. Next payperiod do the same thing, and another one if necessary to get what you want, you should have put yourself in the $75 - 250 range, just to be fair to yourself. You’ll be amazed at the encouragement and empowerment you feel with having done that one small thing. Imagine what you could do if you got really serious about saving your money????

Step Eight… it’s time to start shopping for groceries with a list. You’ll be amazed at how much time and money you’ll save by shopping with a list. It also feels more controlled when you’re shopping and you don’t go home without anything either. If you take the time to better plan your trips to the grocery store, you’ll find that your money is better spent and you get more for your money because there are no impulse buys.

Occassionally when I go to the grocery store, I’ll buy the latest Archie Comic Book. I think they’re funny and they’re less than $5. Maybe one or two extras you forgot when you wrote the list you can make an exception for, but if you walk through your house and make the list while looking at what you have and need, you’ll do a lot better.

I’m sure this looks like an uphill battle, all these steps I’m giving you to make life better for yourself, but you’ll discover that with each step you implement, you gain more control over your situation, and more importantly, your money.

I recommend an allowance for you and your spouse, maybe a small one for the kid(s). It works, the money is out of the budget rotation and each person is responsible for making their own money last, overall it’s less worry for the person with the job of doing the family finances. Another benefit to having personal allowances is that if you shop on a list, you can try different dinners to take to work with you and write down the ones you like and develop a menu of microwave dinners, you can keep more of your allowance for tangible things like cd’s, clothes, etc. instead of spending money eating out.

I think we all know how important it is to prepare for our future and we all realize somewhere down deep that it’s within reach, we just have to be more disciplined about how we conduct our everyday spending. We can’t always live in the today even though it’s more fun.

I never understood until recently why everyone always says that their 20’s were the best years of their life which has been true for me too. It’s because after all that carefree living, you have to put your nose to the grind and get after preparing for those years when we don’t bounce back so quickly, if you know what I mean.

Don’t get me wrong - life is always stimulating and it can always be exciting and spontaneous if you want it to be. You just don’t have to let that keep you from being prepared for the days when your grandkids are the ones who are spontaneous and you’re the one sending them money on their birthday and remembering when milk cost less than $2.

Have a great weekend everyone!

Click Here for Part Three.
Click Here for Part Two
Click Here for Part One