Financial Reflections

Budgeting is boring. And paying off a credit card is a lot less fun than just paying the minimum and using the rest of the money to buy the latest MP3 player.  But as those of you who’ve been reading for a while know, I keep pretty close track of my personal financial progress.

I’ll be honest, personal finance isn’t always easy.  It’s mundane, boring and sometimes frustrating.  But it’s worth it.  When it’s time to budget, or remind myself to buckle down to pay off debt, I keep the following items in my mind to keep me motivated:

1. Budgeting allows you to think before you spend - I really underrated this one until recently.  I’m able to see my spending month to month and how it changes.  I approach each month with a plan.  And I have to really determine if a purchase is worth it in my mind.  I make far fewer impulse buys and have gone from wondering where all the money went to having more than I expected.
2. Saving and investing provide you with freedom in the future - I’ve got a tiny emergency fund right now.  But I also have the knowledge that if I hit a bump in the road, it won’t completely derail my plans.  I also have a small retirement fund set up.  And last quarter was pretty good to me, so I have some small hope for the future.
3. Balancing your checkbook provides you with peace of mind - There’s really no better way I know of to keep track of where I’m at financially.  I also have the knowledge that I’m keeping to my budget - or not - and can take action accordingly.
4. Paying off debt provides you with a sense of immediate freedom - Every credit card I unload is sheer bliss.  There has been a bigger load lifted from my mind than just the monthly payment.  I’ll always have utility payments.  I’m on a path to eliminate my credit card debt forever.  That means no more payments ever.

I also have to give credit (not the monetary kind) where it’s due.  It was Liz Strauss’ excellent article 10 Reasons to Get Jazzed About Writing in her successful and outstanding blog that inspired this piece.  Not only did it get me jazzed about writing, it got me even more jazzed about personal finance.

So give it a try, think of what all the mundane things you’re doing with your money mean in the long run.  Or even in the short run.  When I do that, I have all the incentive I need to keep my personal finances on track.