
How many of you dream of becoming wealthy? Your goal is to have a lot of money. Well, guess what. Money is not a goal. What is it, then? Money is simply a tool that facilitates your ability to reach a goal. You are best served when you master successful use of this tool.
It’s Not Personal
Money is neutral. The way it’s used is what can be classified as good or evil. Develop a healthy attitude about money. Understand that it’s most effective when it allows you to live your life feeling secure in the knowledge that you have options and can take advantage of opportunities as they present themselves.
How often do you hear people say money buys happiness? This is another untruth. Money, in and of itself, does not buy happiness. Think about wealthy families throughout history that suffered immense misfortune. Greed, suicide, depression, accidental death and assassinations plagued the Getty, Kennedy and Rockefeller families. These three represent well-known examples of families that experienced extreme loss despite their wealth. The list is far more extensive than you can imagine. Grief and suffering do not care about how wealthy you are. It’s what you do with money that determines happiness.
Budgeting With Goals Is The Smartest Way
Let’s get down to basics. How you manage your money determines your ability to acquire the amount of wealth needed to fulfill your specific needs and wants. I emphasize ‘specific’ because the definition of wealth is an individual determination. For me, wealth is having the ability to pay my bills when due and treat myself when appropriate.
And Most Important – Money Doesn’t Buy Happiness

Two schools of thought come to mind for those trying to master the art of budgeting. The traditional method suggests determining monthly income and allocating expenses accordingly. An alternative to budgeting by monthly income is to budget by paycheck. This method probably works better when money is tight. You get a more focused picture of how to manage your funds when you review your financial situation more than once a month. Ideally, graduation to monthly budgeting is the next step. See my posts What Type Of Budget Works Best For You? and You Need A Budget. Period. for more budgeting tips
A budget is considered balanced when income and expenses equal each other with nothing left over. Whether you budget monthly or by paycheck, the ideal scenario is to end the budgeting period with more income than expenses. What’s leftover can be used to treat yourself, help others or go towards your savings. More on that in a minute.
Saving To The Rescue

You should consider putting unused income into your savings; however, this should not be the first way to address saving. Your list of expenses should always include a line item for savings. And, in my opinion, this expense should be addressed first. How much do you want to save each time you receive income? It doesn’t matter if it’s $5 a week–start with your saving goal. Pay yourself first! This amount can serve as your ‘life happens’ fund. Your budget will not have to take a hit when you experience an unexpected expense.
In conclusion:
1. Money is simply a tool that helps you accomplish your dreams.
2. Budgeting will help you reach your needs and wants goals.
3. Helping yourself first makes it so much easier to help others later.
One question before I go. How do you budget your money? Do you categorize your income and expenses monthly or when you get paid? Do you use the 80-20, 70-20-10 or another allocation method? Please pop your suggestions in the comment section. Thanks!
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