Part 2: BUDGET

In the first episode in this series of six, I quickly showed you how to calculate your net worth. It will take a little longer today, but I want to explain why you need to keep an eye on how and where you earn and spend your money, i.e., budgeting. When you learn to budget, your net worth will begin to increase. Budgeting is simply making a plan for your pūtea (money). Although I meet hundreds of people who are keen, motivated, and willing to do better with their money, I meet few who are, “Oh yay, let’s track our spending and earning each month.” I know. I understand your reluctance, but if you want to grow your wealth, you must do what wealthy people do. And they know how much they earn and spend. So, I’m sorry, there are no shortcuts here; you’ve just got to suck it up and budget anyway. Most will come to enjoy it as I do, simply because it gives me a feeling of control over my life and removes any anxiety around my pūtea. But for some of you, it will always be a chore. So be it! Do it anyway.