453. Budgets

Keep a tight rein on your spending. Learn how to prepare budgets and to re-adjust them. Learn to live by your budgets. Become friends with accounting and spreadsheets. Learn to project into the future using spreadsheets.

434. Realism Vs Optimism

In a sense, optimism is the opposite to realism. Realism is a useful mind-set when making some decisions such as setting out your budgets, but don't fall into the trap of using this mode of thinking for all situations. It can lead you to pessimism and depression.

410. The Practice of Red-Lining

Avoid red-lining. This is the practice of getting things done just barely in time or of spending nearly all your money and being broke just before pay-day. Make a budget for yourself for every month and live within it. Do 1, 3, 5, 7 and 10 year budgets. Revise and refine them regularly. Train yourself to live on 19 - 20% of your income and use the rest in accordance with the income allocation plan set out above.