Finances Pt. 7: The Efficient Budget Puts People First

Most people who want to save try to save what money is left at the end of the month. The problem is there is rarely anything left. George Clason in his wonderful book, “The Richest Man in Babylon” says, “a part of all you earn is yours to keep.” When I first read that it kind of made me angry. Of course my money is mine to keep! But as I read on I understood what he meant. Just like in the budgets previously mentioned a lot of the money you earn is already designated for other things. However, some of it you keep for yourself. Robert Chilton in “The Wealthy Barber” says, “Pay yourself First.” The guy who wrote “The Automatic Millionaire” says the same thing.

When it comes down to it you won’t be able to ever reach financial security if you don’t save. If you wait till the end of the month to save you will never save. Skim the cream off the top and you will eventually have enough for a very nice stick of butter.

What about all that extra stuff we do to save money. Running the program at the YMCA, volunteering for the symphony, or going to the dollar movie instead of the full price theatre are all obvious ways to save money. Let’s analyze one dollar of money you earn. We’ll look at it two different ways. We will look at it both from the perspective of someone who has debt and spends money like normal people do and then we’ll look at an “Efficient Budget.”

Wow! Living like most people do you are saving a very minimal amount for retirement, spending 20% more on debt and at the end of the month you have a measly 4 cents left on every dollar you earn.


Now let us look at a budget of someone living “The Efficient Life.”





















With your Efficient Life Budget (the budget that puts the highest and best use of your life, i.e. relationships, at the center) you even have a little blow money left at the end of the month!!

Some of you read this and thought to yourself; “Why live on the Efficient Life budget if it comes out that you have eight cents left?” Well first of all eight cents is twice four cents. Even more importantly though is the effect it has on your relationships. The better budget puts relationships first and things second. The budget isn’t putting you into debt. It is relieving stress out of your life and relationships. It gets the financial monkey off your back!