TO BUDGET OR NOT TO BUDGET…..THAT IS THE QUESTION

Growing up as one of four children, I came to realize that my parents were able to provide for all of us even though our family was not the richest in the land.  They  had lived through the Great Depression, and had learned how to stretch a dollar.  I don’t know which one of them had devised the family budget, but it was simple and it worked.  My Mother had ten to twelve #10 envelopes in the top china closet drawer.  Each was clearly labeled.

1.      Mortgage

2.      Electric/Utilities

3.      Insurance

4.      Groceries

And so on.  Below the label was the monthly estimated expense or payment.  Below that was the amount needed each week to reach the monthly total.  At the end of each week the net pay received was divided up among the envelopes.  

While in college (studying accounting) I learned that businesses also needed to know how to create a budget.  Somehow over the years people have forgotten the importance of personal and business budgets (or ignored the need because times were good).  Now we are in the throws of the worst recession since the Great Depression that my parents had guided our family through.  I can’t help but wonder how much better off all of us would be now if so many people had not thrown caution to the winds when buying homes that they could ill afford.  If these people had only setup a budget and adhered to it, how many would still own their over sized homes.

It is time for communities and businesses to join forces to teach anyone willing to learn (the easy way) how to setup and manage a budget.  We need knowledgeable volunteers willing to give up a few hours a week to teach.  And those who cannot teach help purchase supplies so that others may learn.  Help your employees learn to budget and they will thank you.  You can help relieve the stress that your employees are experiencing due to money woes.

Also, business owners need to put aside their pride (or arrogance) and learn how to budget and compare that with actual results.  I can’t tell you how many times a business owner has told me over the years “I know how my business is doing by how much money I have left over”.  Only to ask “What happened”?  By not listening to their advisers, they spelled their doom.

Quicken (for individuals), QuickBooks Pro, QuickBooks Premier and Enterprise Solutions (for your busness) are all capable of producing budgets.  There are no excuses for not having a budget for home or business.

So the answer is “TO BUDGET”.  Now get to it!