Friday, 29 September 2017

Multi-Layered Budgeting

I am still weary of the upcoming Total Debt Freedom Day, and well aware of the many things that could still happen to throw that plan awry. 

I am starting to peer beyond the wall that is Total Debt Freedom Day, however, and that has been rewarding.

Once I achieve one goal, I head on towards another one; that is just what I do. To do otherwise would throw me back into the stagnation that was my life for oh so many years. 

After I pay off the Wanda Loan, and become Totally Debt Free, (save for one visa card) I will have only 4 paycheques before the end of the year.

I have four specific goals to achieve before the end of the year, however. The problem is that they will not be evenly divided into one per paycheque.

So how to do all that I want to do? The key is to work on each one, a little bit at a time, divide them into bits and move all of the goals ahead at the same time.

My four goals after Total Debt Freedom (save a visa card) are:

1. Rebuild my Personal Overdraft
2. Flush money down the toilet (AKA: Contribute to my RRSP)
3. Build up my Mid-Term Savings
4. Pay off the Visa Card (in full)

Okay, #1 I can and will do on the paycheque on Nov 7. Yet at the same time, and through all four paycheques I will work on #2 evenly.

I will work on #3, for the remaining 3 paycheques. 

I will also work on #4 through all 4 paycheques with any cash that I can free up. I do hope to get this done as soon as possible, while not endangering the other goals.

After the Visa is paid off, and if it happens before the end of the year, then any extra cash will go into the Mid-Term Savings. 

This is just one example of how you can work on multiple fiscal goals at the same time. I am able to do this because I budget multiple paycheques ahead.

It is important to note that the further you go into the future (with budgeting) the less accurate your budgets become. 

Each budget is built on the last one, so if you don’t accomplish your goals within this paycheque cycle, your next one will be thrown off.

Yet it is by budgeting into the future that you can catch a glimpse of the future that you could have, if you keep doing what you’re doing; if you keep working your plan.

For me, let’s just say that it looks like 2018, will be a very good year for me. While the pragmatist in me insists that the future is not set, I am certainly hopeful and positive for the future. 

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

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