(03) 9020 2905My late Uncle Mick was the laziest organism in our solar system. Slugs worked harder. Faced with choices, he always took the easiest option.
Mick had a saying for dealing with problems. “Package it up nicely, Bruce … and pass it to someone else. Then make yourself scarce!”
One day, a machine on his factory line broke 15 minutes before shift change. He wobbled something back into place and then took off early, leaving it for the next bloke.
Of course, he got to his favourite stool at the pub 15 minutes early. Just in time for the roof to collapse on him.
The lessons from Uncle Mick’s demise? Don’t mess with karma and shortcuts can kill.
You want the happy home budget simple formula? Here it is.
Income – expenditure = > zero.
There is no magical easy shortcut to wealth. Simply, you can’t spend more than you earn.
Download my “budget planner” (top right at www.debtman.com.au). Put in what you earn and what you spend (it adds up automatically). Make the figures as accurate as possible.
Having individual negative months is okay. But if the annual result is negative, you have to earn more and/or spend less.
Unlike Federal Treasurer Wayne Swan, you can’t just raise taxes. Earning more might not be possible or practical. So, you’re going to have to cut spending.
It’s painful. It requires sacrifice. But having money left over each week/month/year is the absolute foundation stone of home finance.
And the less time you’re in the pub, the less likely the pub roof is to fall on your head.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.