Begin with the end in mind

Before we can make any budget or whatsoever, we must have a reason for it. This reason or goal will help discipline ourselves to stick to the plan in whatever circumstances. You might want to ask yourself questions like: What do you want to achieve? Who is involved? Why is this goal important?

Examples of goals and dreams are:
$20,000 to establish an emergency fund in 6 months
$500,000 for my child's university tuition fees and living expenses in the states.
$3,000,000 for my financial independence so that I can retire to enjoy my desired lifestyle with my love ones in 20 years

Once you have your own goal in mind, we can budget for it.
Importantly, you must recognize the need for it. Write it somewhere, look at it twice daily, once when you wake up and the other when before you turn it. This will help you believe in your plan and make sure you keep to it

After the plan is made, the next steps would be the action sequence. Plans on paper are dead. Action is what propels it nearer to the goal.

Reference : ifast Insight magazine Nov-Jan 09

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