Money Wellness Wednesday - Long-Term Thinking

Photo Credit: daveramsey.com

Long-Term Thinking 

I love the statement above: "Almost all long-term thinking has short-term pain. Almost all short-term thinking has long-term pain and short-term relief."

Sometimes we make quick decisions about spending or we make quick financial commitments (debt). How many times did you go to the store or the car lot just to "look". Before you know it, you have signed papers for a new car loan or charged $500 to your credit card. You may have short-term relief or short-term joy, but now you may also have long-term pain of getting out of debt. You have traded your living expenses or other opportunities to spend your money (like giving) for a long-term debt payment without consulting your long-term plan.

But if we were to wait and think ahead and plan out the long-term, we would then have a plan to tell our money where to go and not allow ourselves to get caught up in more debt. We can see when we will actually need that car and put a plan in place to save for it. We can stay on track to get out of debt before purchasing those "wants" and obtaining those things which only give short-term relief or joy.

It really brings home that quote by Benjamin Franklin, “If you fail to plan, you are planning to fail!”

If you haven't already done it, put a monthly budget together. Then look forward and plan out your year. Then look forward again and see where you want to be financially in 5 years, 10 years, and even to retirement. It's just a plan. It could change, but having it written out will help you stay on track. Having it broken out into these chunks of time will make it more achievable. Then make sure you monitor and make adjustments as necessary. It might be painful at first to stick with the plan, but in the long-term, it will bring lasting financial relief.

You can master your money... and I can help!  

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