Make it count

Like most things in life, saving and spending money is a constant balancing act. On one hand, it does you no good to save large sums of money if you have no plans to enjoy it and don't know how to truly take advantage of it. On the other hand, if you take advantage of your money too often, you might enjoy multiple grand adventures, but they'll be short-lived and you'll find yourself out of luck when the money well runs dry. Striking a balance between the two is key as you'll discover in the guidelines below.

Plan on tomorrow coming

Some people live as if there is no tomorrow. They live for the moment and operate on the premise that life is short and they should take advantage of it while they can.

This is an appealing strategy...until your money runs out. Then not only do you find you can't afford to live for today, but you must also work for most all of your tomorrows.

You don't want to blow all your money on short-term pleasures. Think about how rotten you'll feel if you seize the day so often you have nothing to see you into old age. It's a sad fact that many elderly people have to continue working hard at a job long into their golden years because they didn't save wisely.

A better approach is to assume you have many, many tomorrows. Plan on living a long and healthy life, and save accordingly.

The importance of setting multiple goals

One way to find a balance is to set multiple financial goals of varying degrees. A few solid long-term goals will help you look toward and plan for the future. Several short-term goals can help you enjoy the present. In both cases, you learn how to plan and save your money, but you also get to enjoy the benefits of your savings.

For example, say your long-term goal is to own a house outright with no mortgage payments. Paying off a house is a great long-term goal as well as a way to increase your wealth. Typically the first step is to find a house within your means, save for a down payment, and sign a mortgage. Once you're in the house you can determine how you want to pay down that mortgage. If you signed a regular thirty year agreement you can plan to spread payments out over that time frame or you can set a new goal, such as twenty years, and pay accordingly. Either way, you have a solid goal in mind that keeps you on track financially. But the best part is that while you work toward that goal you get to enjoy the benefits of living in and owning your own home.

A good short-term goal provides you with a reward or benefit much more immediately. Short-term goals should be things you can accomplish in two years or less. Buying a car, going on a vacation, or purchasing a flat screen television are some good examples.

Why money is a lot like food

In a lot of ways, balancing your financial priorities is like balancing your food intake. If you consistently eat too much in a single sitting, you'll gain weight. As you gain weight over time, your health and quality of life start to decline. Down the road, you find it hard to enjoy life because of all the health problems you created for yourself.

On the other hand, if you eat too little you could starve to death.

The best approach is to eat good meals, but only a little at a time. From a financial standpoint, you should enjoy what your money can bring, but spread it out over time. Piece it out gradually so you stay sustained for the long run.

The right mix of money and goals brings balance

There's no merit in saving money just for the sake of saving money. You must attach some form of personal significance to the act of saving. This is where goals come in. Save money as a means to achieve those goals. Don't save because you just want to save money. Find the right balance between saving and achieving goals and you'll enjoy a long, comfortable, and financially rewarding life.

Evaluate new approaches

You're better served by investing your time in more enjoyable activities than in performing super detailed analysis. So when you can, let others do the work for you. For example, do some research upfront and find a bank or a credit card company with a reputable tracking system. Look for a place that double checks errors and keeps electronic records for you. This way, if a mistake were ever made, all the required information would be on hand.

Another great feature to look for when considering banks is an unlimited time frame for correcting mistakes. In other words, because it sometimes takes mistakes a while to surface, don't use the services of a place that only makes corrections within three days of an error being performed.

Using a reliable banking company or credit card agency will save you from having to constantly scour your own paper records. It is the responsibility of banking agencies to maintain high quality and customer service standards. Trust them to do their best at that job.

Finally, be aware that computers have made financial transactions and calculations much more reliable. Banks nowadays make far fewer mistakes than they did when account sums were calculated by hand. Consider scrapping the time you spend balancing your checkbook and let the bank do it for you. Errors occur infrequently and you can look online or in your monthly statement to make sure the numbers appear correct.

An additional way to save time from the dull task of balancing a checkbook is to keep extra money in your account. You could also consider adding overdraft protection. That way you won't have to continually worry about bouncing a check.

Pay attention to where your energy goes

When you first begin tracking and analyzing your spending habits, you may have to devote a fair amount of time upfront. As you become used to being financially aware, you'll find that the process gets easier. Stick with it, and when you have an idea that will improve the flow of your organization ' run with it. Don't let your energy stagnate in details and careful organization.

Ultimately, you must keep your long term goals in mind. Being financially organized is undeniably important. Yet the point of financial organization is to save time and ultimately pursue your own interests. Don't get bogged down by details - always keep the big picture in mind.