How Planning Can Save You Money

In the everyday struggle to live life and further ourselves through hard work, dedication, and the occasional fun, sometimes we get lost in the details. Sometimes we attempt to do too much in one day.

The occasionalemergency can through a monkey wrench into any situation and in some instances, the lack of planning simply leaves us not knowing what to do.

Unfortunately, our unpreparedness can lead us to an emptier bank account, as well. Below are three stories that will prove the positive impact planning can have on your wallet.

Make a Grocery List

Once upon a time, in the Valley of the Stay at Home Mom, there was a mommy, a daddy, and three beautiful children. On Monday of each week, the mommy would run to the local grocery store to buy enough food for the family to live off of for the next week.

Each Sunday, after church, the family sat down together and determined what Mom would get at the store the next day. Mom and Dad usually determined what was needed and the three kiddos would help them determine what wants the family could afford. That way, they would never spend more than they need to at the grocery store.

Be that as it may, one Sunday, the pastor ran particularly long on his sermon and the family didn’t have enough time to sit down and determine the proper grocery list for Mom. The next day, Mom went on her usual trip to the store and decided to wing it.

By the time she got done shopping, she had spent 25 dollars more than usual. This was $25 that could have been used for gas, Bobby’s field trip, or saved for a rainy day. Next time, Mom won’t forget to plan her grocery list.

Plan Your Vacation

Last July, the Smith family decided they would take their children, who were 5, 8, and 13, at the time, on their first trip to Disney World. They had scrimped and saved and waited for a long overdue income tax return. This year’s family vacation would be the best ever!

The hotel was reserved, the tickets were bought, and the rental car was waiting on them. Mr. and Mrs. Smith felt prepared and accomplished. They had considered every major cost the trip would deal to their bank account. That is every cost except souvenirs.

By the time they had finished their vacation, they had spent a third of their budget on Mickey ears, t-shirts, and toys. The following year, Mr. and Mrs. Smith set a spending limit for each family member and saved $250. Lesson learned.

Be Clear About Business Goals

In the Summer of 2009, Mr. Haggerty decided to open his own ice cream shop. He had some very successful years on his prior job and took the risk of investing in a small business. One day, he was working on inventing some new flavors and made the decree that his vice-president would take a business trip across the United States to find out what kind of flavors Americans wanted to try.

In the process, he forgot to set a strict plan for his colleague to follow. He trusted his VP. His VP, however, had plans of his own. While on his business trip, he decided to take the time to stop at various bars along the way, spend a couple needless extra nights in the hotel he reserved, and treated himself to some of the finest restaurants for dinner instead of bringing his food or choosing cheaper venues.

All of this was charged to Mr. Haggerty’s business account. Needless to say, when Mr. Haggerty received his monthly statement, his VP was demoted and his pay reduced in order to offset his overextended bill. Mr. Haggerty also made a resolution to write out a predetermined business trip plan and budget for use with all future business trips.

Money is the grease that oils the cogs of living. Don’t allow the lack of a simple plan to steal one of the most precious commodities from your wallet.