An Easy and Effective Budget PlannerSimpler is almost always better

Two Types of Purchasing Scenarios: Immediate vs. Non-

immediateWhen we need to

buy things NOW! Few things fit in this

category Most common

example: Groceries, toiletries, medicine,and hardware

When we DON’T need to buy things now Every thing else goes

here If it’s not vital to your

survival over the next 24 hours, it’s not immediate.

Immediate Purchases:

The ProblemThis should be simple, but it’s not. You know your family needs food, medicine, or toiletries—so you head to the store.

But these stores are designed to encourage impulse buys. That’s why when you leave home thinking you’ll come back with picture No. 1, you instead come back with picture No. 2!

Immediate Purchases:

The SolutionMAKE A LIST!

Does that sound too simple? Well, guess what? It’s actually that simple (as promised).

Before heading to the store, make a list of exactly what you need, and stick to it. You’ll find out that you’ll survive just fine without those impulse buys.

Non-Immediate Purchases:

The ProblemLike impulse buys, we often confuse what we want in the moment, with what we really need in the long run.

That’s why we buy the car before considering if walking or biking is an option; we buy the expensive book before checking out the library; and we pay for cable before exploring other, better, and cheaper alternatives.

Non-Immediate Purchases: The Solution

The most basic principle to follow: wait … and see.

Before buying the brand-new shirt and jeans, wait a week and see if you still think you need them. If so, then by all means, buy away!

Of course, for larger purchases, longer waits help.

Don’t buy that new furniture the first time you see it. Return home and see how you feel about your current furniture.

Try walking, biking, and using public transportation after going to the car dealer, but before deciding to purchase a car. See how you feel a month later.

All Purchases:The Universal Solution

Before buying anything, simply ask: “One year from now, am I really going to be any happier having made this purchase?”

If, after reflecting, the answer is yes, then you’re probably making a good buy.

You’ll be glad you bought food to eat and clothes to wear, and paid your rent or mortgage, as they helped you stay alive between now and a year from now.

If this is a non-immediate purchase that you decide you need, then consider different levels of spending.

For instance, if you want to make coffee at home every morning, is the $300 coffee maker really going to make you happier one year from now than a standard French press that runs just $30?

Why Does This Work? Quite simply, by taking these three simple steps, you

are separating what would make you happy right now (impulse buying) from what will make you happy for months after you leave the store.

Of course, there’s nothing wrong with being happy right now, unless you’re being carefully manipulated into buying things you don’t need, which—unfortunately—is usually the case.

By focusing on these simple steps, you are no longer working from a place of sacrificing your desires. Instead, you are prioritizing your long-term well-being. And all without needing written budget planners, spreadsheets, or guilt.

So Let’s Review Our Easy and Effective Budget

Planner1. For immediate purchases: MAKE A LIST!2. For non-immediate purchases: WAIT A WEEK,

MONTH, or YEAR.3. For all purchases, ask yourself: “One year

from now, am I really going to be any happier having made this purchase?”