Have a Budget – Be Prepared for the Unexpected
Peace of Mind When you have a Plan in Place
Being in the banking business for more than 20 years, I had the pleasure of working with many clients to help them obtain business financing for their company. Some were looking to obtain new equipment to make their business run more efficiently and others were looking to secure financing to help them purchase a new building from which they could operate their company.
As part of the financing package, we would always obtain tax returns and the rest of the “laundry list” of paperwork that every bank needs to reach a decision for a loan request. Some of these clients were going to actually build a brand-new building and we would always obtain a copy of their blue prints and plans for the new construction.
Have you ever looked at a set of blue prints?
There are pages and pages of plans for every single facet of the building process. There were pages that were specific to the electrical plans and every wire, socket, light switch and source were named and located. There were also pages for the landscaping plans that would outline where every bush, tree and sprinkler system would be placed.
I remember looking through these pages and marveling that every single detail was specific. There was a plan in place for every single 2×4, HVAC duct work, light switch, sidewalk, door handle – there was a plan for everything – literally!
As I think back on those beautiful scrolls of paper, I wonder if our monthly financial budgets should be much different. Shouldn’t we have a plan in place for every single dollar that we earn? Shouldn’t we have a plan in place for anything unexpected – a flat tire, a frozen waterline, an extra copayment to cover an unexpected trip to the doctor for the kids during flu season? A real and defined budget would allow you to step into every single month with a full “blueprint” in place as to how the month should go financially.
No Plan is Perfect
No plan is absolutely perfect but when a plan is in place, you also have the ability to make necessary adjustments so that the plan isn’t trashed by something unexpected, but you have the ability to be nimble and adjust. Think about the “peace of mind” that you would have if you had a plan in place and had the security of knowing that you had a partner to hold your hand during the tough times.
Now, take some time and do it! You know that you should, but it seems like such a hassle – right? If this is something that you have been thinking about for a long time but have never taken the time to put one together, give us a call and schedule an appointment. We are experts at it and will be happy to offer you some basic direction and advice. It is what we do at Hollander & Associates.