The success of The Barefoot Investor book shows just how powerful organising your finances can be. It talk about the steps of financial commitment and how to be accountable to it. If you haven’t read the book, I recommend doing so, it’s easy to get into and somehow make the dreaded financial commitment responsibility enjoyable to read. The information isn’t ground breaking, but it’s good to hear common sense finance guidance a couple of times: don’t spend money you don’t have. Put a regular amount of your pay into savings. If in a partnership, talk about your financial goals with your spouse and make sure you have a shared vision. Invest in shares that have boring, slow, steady returns.
This got me thinking about the 3 things you should do prior to making a financial commitment. Take this example, I recently joined a program that costs $199 a month. Before signing up I did these three things:
I hope these three things help you embrace your next financial commitment and enjoy the program, holiday, course, equipment, tool or whatever that you’ve purchased without stress.
For more flor&order budgeting ideas, check out this post.