So, this will cover briefly the intent behind my Fiscal Directives that I wrote.
In a nutshell it starts with the understand and expectation that you are in charge of your fiscal system and current fiscal state.
You’re and adult and in responsible for what you do and the results of your actions (or inactions).
I don’t believe in absolutes, as they don’t work, as life is complicated and for every rule you put in place there are a thousand situations that they should be broken.
Constitutions and other guiding documents (like my Fiscal Directives) are there to set out the structure and offer guidelines.
Yet for each rule in them, there needs to be a way to override that rule. Yet overriding a rule should not be easy to do, possible, not easy.
This is easier to accomplish in a Constitution than a simple list of directives, here there are warnings so as to give you a moment of pause.
The overall structure is intended to funnel cash towards your Mid-Term and Long-Term savings accounts and leave them there.
Each budget is based on the Income that you receive during the period that the particular budget is in force balanced against the Expenses and Debts that you pay.
Savings are not income, as your savings is not new money coming in to your fiscal system. (Your paycheque, sales, gig work, or other similar means are your Income.)
With regards to credit cards, sure, you should pay off the total outstanding balance each and every payday and it is strongly recommended.
I do so and I have a problem with carrying a balance on any credit card.
Yet I know that life is complex and that there will be times when you have to carry a balance on your credit card. That is why the fiscal directives will let you do so.
You can also draw money out of your Mid-Term and Long-Term Savings Accounts when you wish. Simply because it is your money so do so if you want.
This is for large purchases that you plan for in advance, like buying a car, or buying a house/condo, etc.
If you were never allowed to run a deficit budget, then you could never take cash out of your savings, and if that was the case . . . what is the point of your savings?
(By the way at the point of “Enact Special Project Spending if desired” is the part where all of you people wanting to pay down debt would plunk a large payment on your debt).
If you are wondering how to free up cash in your budget, then just pretend that your income was just cut in half and find a way to balance your budget.
I mean devise a plan where you could live on half of what you make and still pay all of your bills.
You would have to downgrade your lifestyle, sure but just how would you do it?
The next challenge is to summon up the courage to make that change now, and use that freed up cash in your budget to pay down (and then off) your debts.
As always: Keep your head up, your attitude positive and keep moving forward!