Now, Next, and What Could Be

This blog entry ties into the one from the day before last, the one about the dancing budgets. This is to expand on that concept and let you know the real secret about the power that those budgets have.

The idea of those three budgets is to keep me focussed on what is important and in a certain order. By doing this I can control the direction that my life and fiscal situation are moving in.

I don’t care about the budget from the previous payday, because that is in the past and what’s done is done. Spent money can’t be recuperated.

Sure, I always pause and reflect on payday what happened and what I can learn from the previous payday but I don’t dwell on the past, I look to the future.

1) The Now Budget

The purpose of keeping the budget for the payday that I am in, even though most of the activity, spending and allocating of funds happens on payday is to remind me of my targets.

This also allows me to alter that budget to reflect any changes in my actual spending during the pay period.

This will let me see in real time the impact of this or that spend. This serves as a deterrent to straying from the plan and budget.

2) The Next Budget

The purpose of the starting a budget for the next pay period while I am still in the current pay period is to let me plan out what I will do with the next paycheque.

This also lets me see how I can nudge myself ahead by not only doing what I plan to do in this pay period but also what I could achieve in the next pay period.

3) The What Could Be Budget

The purpose of starting a budget for the pay period after the upcoming one is to give me a glimpse of a possible future.

This budget is based on assumptions which are based on other assumptions. As such, this budget is woefully inaccurate and inherently unreliable.

This budget does let me see what might happen if things go as I hope and assume for the next month. The purpose of this budget is that it lets me see a little further down the road, to inspire me.

By keeping my focus on the future, the immediate future that is, it helps me take the necessary steps today that move me steadily and surely towards my long term goals.

As always: Keep your head up, your attitude positive and keep moving forward!