Resource to Put Together a Spending Plan

[DerrikCFP]

I heard a story some time ago about an elementary school whose playground was near a busy street. The children would not play anywhere near the street because of the danger. Instead they congregated close to the school building.

Later on, the school decided to build a fence along the length of the street to separate it from the playground.

Interestingly, after this boundary was placed, the kids moved their play far beyond their original location and closer to the street itself. In fact, they would play right up to the fence boundary without fear. How interesting that a boundary actually decreased fear and tension rather than increased it.

I think that this story beautifully illustrates the power of a spending plan.

The purpose of a budget or a cash flow spending plan is to create a boundary of protection for each category of spending. It gives you a clear sense of where you can safely play and where the danger zone is.

So many people avoid using a spending plan because they assume that it will decrease their freedom. In actuality, effective boundaries increase freedom in the same way that erecting the playground fence led to greater freedom and peace of mind to play beyond what the children were normally comfortable with.

Without clear financial boundaries there is tension and uncertainly every time I spend money since I do not know how each transaction will affect my big picture. But once I lay out a game plan to choose where my money will go and create a system to stick with it, I benefit from greater confidence and peace of mind.

Maybe you've never found a resource that could really help you master your cash flow. If that is the case, I encourage you to download a free ebook called Cash Flow Solutions. It will walk you through everything you need to know and do to gain control and experience greater freedom.

Freedom through boundaries.


By Derrik Hubbard, CFP
Read our Christian Financial Planning Blog

[4jacks]

Good analogy, my wife and I found this to be true.