Going into December, especially in this miserable economic climate, many of us have holiday budgets. How much are we going to spend on gifts, food, drink, travel and charity this year? While you are working with those line items, I think we should also consider an Emotional Budget, in similar terms. If we don’t, not only will we overspend financially, but emotionally as well, leaving us in a double deficit as we start the New Year.
On some level, our lives are like countries. We have to manage domestic relations (family) and international ones (friends, colleagues and neighbours). There are transportation systems to consider (buy a car or a bus pass, airline travel or road trip for holidays), not to mention promoting a viable economic system without which we have little control over our own affairs (kind of like Greece and Italy).
Over the next few blogs posts we are going to table our Emotional Financial Statements. We’ll talk about the our Assets that strengthen our Emotional position and dissect the Liabilities. What is your Emotional Net Worth, right now? How can it be improved? Then to our Income Statements. Which transactions increase your emotional position, what are draws against the account? With this approach, I hope we’ll see that while influenced by external factors, we have control over our Emotional Budget through our own decisions and actions.