Everyone knows how much they make
and how much they give,
but not many know how much they spend
and less people know how much they save,
if they save at all.
Keeping track of all of this is important and the banker knew that. After keeping his ledger for one year, he was able to calculate every penny that went through his hands and was able to back this up with his receipts. He had experimented with what to record on the ledger like the date, a description and the amount. He also wrote if it was cash or credit card. So, as the fiscal year ended, he calculated everything and found that he was able to save, not much, but enough. And the banker decided to make goals for the next year. His goals included saving enough for a new house and going on vacation to the islands like he always wanted to. He spoke with his financial planner to make detailed plans on how much he could save. He was instructed to place the budget in a place he could see. He also placed a picture of his dream house on the refrigerator door to remind him of his goal.
The banker watched his budget every day to make sure he wasn’t over spending and made sure he had the money to pay for all of his expenses. He planned ahead and was disciplined to follow his plan. He decided to get rid of his car and carpooled wherever he went. This saved him gas money and insurance. While he waited for his ride, he would use that time to read the news or a book he wanted to read, like the great American novels. He would schedule grocery shopping trips with others so that it would be time spent with others too. If he wanted to get away for the weekend, he planned it so it would coincide with birthdays and other special occasion and would go with his friends. But there was always room for flexibility and that was budgeted in too. The banker started using the kitchen and invited friends over for dinner everyday. He also got himself a library card and borrowed books to read. And he canceled his TV subscriptions. For his birthday, he registered it so he was able to get everything he ever wanted from the store. The banker would also host lots of dinner parties too and make lots of extra food.
So it was set. He had a financial plan and budget to get him to achieve his financial goal, a dream house. With the help of his ledger he intended on saving as much as he could. This may cost him to tighten his belt but the sacrifice was worth it and one glorious day, he would take his key and open that door to his beautiful new home.