13. Stick to your budget
‘You aren’t wealthy until you have something money can’t buy.’
GARTH BROOKS, country singer
Spend less than you earn. It’s time to focus on the challenge of coming up with and living within a budget.
A budget is a financial planning tool, underpinned by the notion that there is likely to be some form of restriction on our capacity to spend. If we really want to put together a budget that’s going to work, then we need to take a clear-eyed view of our credit card usage. When we pay for something with a card, it’s just a different way of spending our money. So if we have a budget of £100, and spend £90 in cash but have also put £20 on our credit card, we have gone over budget.
Use a diary of past expenditure as a basis ...