Key Takeaways
- When we get ready for a vacation, we typically pack too many clothes and don’t budget enough money.
- When we make big purchases, we tend to forget all the associated costs that come with buying the item.
- If you plan in some extra money beyond the main cost of what you are purchasing, you’ll save yourself some frustration by having a buffer for any extra or hidden costs.
When I am getting ready to go on vacation, I’m reminded of one of my mentors who always told me to take half of the clothes I’m planning on packing, and twice the money. I’m sure a lot of you can relate to that, because it’s so true! We over pack and we underestimate how much money it takes to do things.
When we are talking about money, this happens all the time. You want to rehab your house, buy a car, or buy a big piece of furniture, and what you forget is what comes along with those purchases. You buy the car, then you need floor mats, or a tow hitch, or something else because you realize you need other things to go with the car. You don’t think about these things when you initially buy the car, but that’s what happens. Or say you decide to remodel your house, and suddenly, you’ve got to redo all of the curtains, repaint the walls to match up with the new remodel, and then new carpeting. Pretty soon, you’re staring at an extra $10,000 and you’re thinking, “How’d this happen?”
It’s the same way with everything else when we’re talking about money. So, when you go to do something that requires money, and it’s not as simple as, “Let’s go buy a box of Cheerios,” but rather, something complex that’s integrated with other things in your life, remember, half the clothes, twice the money. Because ultimately, that’s what will happen!
If you keep this in mind up front, and plan for it that way, it won’t be so frustrating, and you won’t get crazy about it. It’ll make your life a lot simpler.
Until next time, enjoy!
Gary