Importance of planning

Plans have their place.  In the real world and if you want to achieve something they are essential. Reading Lena's blog about budgeting this morning made me think about this. I like to be spontaneous. I hate having events coming up which hang over me like the sword of Damacles. Last minute surprises are far more appreciated but I know this is fine for my social life but not for 'real life'. And it took me ages to learn this, which is why I was still getting bank charges for going overdrawn well into my thirties. Thank goodness for online banking, especially as a phone app, it has made me so much more aware.

Anyway getting back to Lena. Two major things lept out at me from her writings:

According to a poll from Gallup, only 32 percent of Americans have a monthly budget, and just 30 percent have long-term financial goals. Even more surprising is a statement that "those with at least some college education, conservatives... and those making $75,000 a year or more are slightly more likely to prepare a detailed household budget than are their counterparts".  Is this correlation or causal? Are they earning more etc because they make plans. I don't know but its a bit of a coincidence. Even amongst my friends and family I am astounded how many don't have budgets. Maybe they can manage without one but I just end up with too much money at the end of my month without a budget plan.

And I honestly believe, the more money you make, the more "needs" you have. I've seen it in our family with every single raise :) On the other hand, when you lose a source of income, you surprise yourself at how creative you become with what you have (again, true story!). So true, even with budgeting  lifestyle inflation gets n the way.

Pop over to Frugal and Thankful to pick up a few other gems from Lena.

So today I am planning (see what I did there??) to collect 900 bricks which I have bought off Gumtree (saving about £400). I am also planning to not have time for much else except cooking some dinner for all. There are times you need to plan and times you dont :)

P