Start with a Budget

designbythink 2016, Quarter 3 Newsletter 2016

Start With
a Budget


A budget is the cornerstone of your financial plan, and your daily decisions determine your financial destiny.

  • Saving and investing actually mean paying yourself first, but we don’t think of it that way.
  • When asked what the first line item on their budget is, most people say ‘bond repayments’ or ‘rent’ or their ‘accounts’.
  • Although a home is an investment, saving for a short-term goal or investing for a long-term goal should be the first expense on your budget.
  • It’s psychological: if you don’t pay yourself first, you may feel negative about your budget.
  • A budget is a matter of balancing your input and output, not the difference between having a life and pinching pennies. Anyone can create and stick to a budget. Anyone.
  • Student loans up to here, credit card debt up to there, we’ve all been there. While it might not always seem fair, dealing with debt payments on time every time — and paying back extra when you can – will help you establish and maintain a good credit record.


In the short term, you should put away at least three to six months’ of living expenses in your emergency fund.

Then, take a long-term view on saving and be smart. The genius is that compound interest will give your saving efforts a leg up over that rainbow.

Goals – Making Dreams Become Reality

In order to turn your financial hopes and dreams into reality, remember this:

  • Most money worries stem from lack of planning, not capital.
  • Always be saving, even if you’re paying off debt at the same time.
  • Save for one goal at a time to prevent putting a big strain on your budget.
  • Create opportunities to save.
  • Don’t get discouraged. Like all journeys, there may be a detour or two. The best way is to get back on course. We all make mistakes and what we learn from them is the key.

Get Smart About Insurance

Do you have the insurance coverage you need? Sure, it may feel like just one more expense now, but it could end up being your saving grace. If you are properly insured, you’ll be prepared for anything that life can throw at you.