In my experience most people do not like the word budget! the word itself brings to mind control by another force, a limiting factor, or regulation of some type.
In the Life Business™ methodology, and in my work with clients, I suggest that the point is to be able to put spending decisions into a context, just like a business would, and view it as a personal choice.
For example, a business will look at a planned expenditure in the context of potential enhancement of future profit. “If we purchase this piece of equipment it will simplify our production process, save labor, reduce waste, reduce potential injuries, thereby increasing productivity and bottom line profit! (ROI or Return on Investment)
In our Life Business™ approach, ROI is not profit or money, but is increased satisfaction. Thus, putting your spending choice in a context makes the choice simple (in my experience)
For example, I could spend $2.00 per day on a coffee or I could put that amount in a separate account to fund my next vacation to the beach :-) (guess which one I would pick….. hint It involves the ocean :-). To be more precise if a beach weekend will cost $ 250.00 that equals 125 cups of coffee. I think that is too abstract to assist in making a choice.
If however we say each week I make my own coffee I save $14.00 (I know the coffee you make at home does cost something…. but work with me here!) That would mean each month I make my own coffee pays for roughly 1/4 of a beach weekend. (Your numbers and actual mileage may be vary.)
You get the idea. It is all about choices and putting your decision making process into a context of what is most important to you helps to focus your efforts in the direction of creating more long term satisfaction.
So what does that have to do with a Red Sports Car ? (It may have gotten you to read this post!) Remember this process next time you see a nice one zipping by you on the highway and think, hmmm that would be fun :-) The choice is always yours.
Would love to read your comments!
Jerry (about to head to the beach :-)
If you would like to explore creating some of these results for yourself, feel free to use my online schedule to set a time for us to talk.
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