Make a Written Plan
Sometimes I hear, “Well, I kinda, sorta know where my money is, you know? I know what it is going to, you know? I do my planning in my head, you know? Having a written plan is absolutely necessary!
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Sometimes I hear, “Well, I kinda, sorta know where my money is, you know? I know what it is going to, you know? I do my planning in my head, you know? Having a written plan is absolutely necessary! Have you ever had a problem that you thought you needed the input of someone else to answer? And when you began to tell that person the whole situation you were able to answer the question for yourself? You found yourself answering your own question, leaving the other person wondering why you asked. This happens to us for a reason. The scattered information in your brain has to be categorized, summarized, and organized very quickly to verbalize it. The clarification of information, which has occurred for the sake of communication, clears your mind and allows you to answer your own question. Then we say something like, I just needed to bounce it off someone.”
Developing a written plan does the exact same thing for your finances. To accurately develop a plan you have to gather, organize, categorize, and analyze information about your money situation. We will never do this unless we put our situation on paper. As you begin to organize this information, you will be amazed that answers to problems will appear easily. The accurate picture is just the first benefit, however. Something mystical happens when we commit something to writing. We somehow begin to live out our plans. I am not saying that if you do a written plan you will fall into a trance and automatically carry out the very last detail. Clarifying your goals and aspirations, and then facing financial realities, changes the way you see your situation. When you see what must be done, you will begin to move in that direction. Are you wondering how to get to this magical place known as “cash flow plan land”?
Step A: Keep your checkbook properly recorded and balanced. Sounds so simple, doesn’t it? Then why do so few people do it? Bank officers tell horror stories of people who bring in checking accounts so far out of balance the only thing that can be done is close them out and start over with a new account. The math involved in keeping and balancing a checkbook is basic addition and subtraction. Some people don’t want to know how low their balance is so they don’t reconcile their checkbooks for six months. We must begin keeping an accurate check book.
Step B: Write out the details. A good plan lives and moves—it is dynamic—and changes as your life changes. You will need to do a review every month to make adjustments before the month begins. If you have lived on an ill-prepared budget or no budget at all, it will take a few minor adjustments to the plan to get to a realistic level. The plan is not to complicate your life; on the contrary, when you begin to know where your cash is flowing, it will make life easier.
Step C: Commit to your plan for ninety days. You have tried living your life the other way all this time. Why not give these suggestions a real opportunity to take hold? A one-week trial run and the “I-can’t-do-its” is not a fair or proper analysis. I am asking you to commit to trying a written plan for ninety days-and I mean commit. If you do this you will have formed a habit that will benefit you for the rest of your life.
Successful people know the value of discipline in their lives. I believe committing to your plan for ninety days will change your life. Ninety days would be less than one percent of your life. If you will give it a try—commit to this for ninety days—I believe you’ll be on your way to financial peace!
Dave Ramsey is a nationally syndicated radio talk show host, best-selling author, and creator of Financial Peace University. Visit www.daveramsey.com for more information.
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