Time to Grow

Ignore for a moment the fact I have told you I have a black thumb, and think about the following:

You've planted a garden. Thinking of what you wanted to grow, you threw some seeds in the ground. But you didn't take the time to prepare the soil, or even find the right kind of seeds. As time passed you didn't water the garden often. The few times you went out to weed you were unable to tell the plants you wanted from the plants you didn't. As the growing season drew to an end you looked over your garden in dismay. The bounty you had anticipated was not there. The little effort you gave produced little results.

This passive way of gardening produces little, as does a passive approach to managing your finances. It can seem pointless at times to worry over every single penny in and out of your hands but failing to do so ensures that your financial dreams will be as disappointing as the garden mentioned above.

I am by no means I financial expect. I follow a mixed set of rules from different gurus. I make mistakes. I learn new and better approaches. But here is what I do know: if you do not tend your money, you will not grow the wealth you envision.

So here it is in a non-gardening way:

1. Figure out your goals. Decide what you want the freedom to do: a dream home, college for your kids, early retirement or maybe a river cruise in Europe. Now keep that vision in your mind as you take yourself through the steps required to grow and manage your money.

2. Know what you spend on things so that you can start deciding where you want to funnel your money. Can you say how much you spend on food in a month? I am sure most of you calculated your grocery bill and felt proud. But guess what, that isn't your food total for the month. What about lunches out, take-out dinners, designer coffee on-the-go and your children's school lunches? Those all should go into that total as well. The first time I looked at our food cost versus our grocery cost I felt like I had been fooled. Sadly, it was me fooling myself. I prided myself on my family's slim and trim totals at the grocery store. But what I had not realized is I was spending almost that much again through the same month, filling in the gaps where my skimpy pantry left people wanting something else.

This same mentality applies to all areas of your budget. Address every penny and determine where you want it to go, where it is most needed or will have the most impact. Each month The Farmer and I make a plan of where we have to spend money and want to spend money. But weeding our money garden doesn't stop there.

3. Look back on what you spent. Were you right in your planning? Did you really only spend X on this and Y on that? Or perhaps your car broke down and instead of putting a set amount towards this summer's family vacation you had to spend it on a new transmission. This look back is every bit as important as the look forward. Writing out a budget is just a list of wishes if you don't review it, adjust as needed and move forward.

My approach to managing the household funds is pretty elementary but it works. Just making yourself accountable for every single penny earned, spent and saved will change your financial future.

Remember, without mindful gardening there will not be much at the end of the season.