Many experts in personal finance preach the need for a written financial plan. It is true when we have a written plan; we tend to see the true picture of our current financial status. A plan puts in words and in numbers our intent for future expenditures, savings and perhaps investments. Steven Covey said: begin with an end in mind. A plan helps us articulate the end that we envisioned. It is a great idea, but there is small problem with a plan. The problem lies in the fact that most people have a hard time putting together the plan and secondly that plan is thought of being a budget. The plan is like a diet we agree to commit to for life only to abandon the idea after a week. Most of us have what is called budget phobia.

There is a group of folks in the State Capital whose job it is to vote on a budget every year by October 1 for the next year. These folks miss the deadline every year. Why? Because they have a fear of the controlling nature of this document called budget. These folks, known in some circle as the US Congress, have shut down the government in 1994 giving the document control over the life, health, and welfare of the American people. It is often said that Congress is out of touch with the general public and does not truly represent the general publics interest. But when it comes to budget phobia, we are properly represented in congress. Our behavior and action as it relates to money are consistent with the folks we are sending to Washington to manage the peoples money.

I submit that budget is an invaluable and indispensable tool needed to achieve financial stability and control of gods money. We must include it in our financial toolbox; it must be sharp and ready for use. However, before we use a tool that can be disruptive and ineffective, before we use a tool without proper training, I am suggesting some exercise to prepare us for this journey in the road less traveled. I am suggesting a renewal of financial mind set.

I am introducing two words: GUN and Butter.

Guns are more accurate the hotter they get, guns are more valuable the older they get; butter, on the other end, melt when it is hot and may not be tasty or healthy when it gets old.

I am suggesting that as we go about our business of spending our hard earned money, we need to ask the question: is the item we are about to purchase is gun or butter? Would it get better over time or would it become useless before too long? Would it improve our net worth? Would it produce income? Would that financial decision have a positive impact in my quality of life over time or would it be a catalyst for financial disaster? By asking those questions myself, I have become an expert on how not to spend money. I usually go to Sams to buy gas. I usually browse the store to sample the various food items they offer. I once tasted a seafood salad and bought a container out of shame because the lady serving the samples was staring at me. I still have that salad. Now when I go to Sams, I still taste the food as I tell myself its only butter, you dont need, remember that salad

Keep in mind I dont have a monopoly on good or bad financial decision. I am sure I made decisions that others may find rather stupid. In fact, I know I made decisions that have been detrimental to my financial health. In a way, making those mistakes, like the one above, improves the validity of my opinion: I can say I have been where you are today; I have walked in your shoes; today I am where you are trying to go: I have a renewed financial mind set.

To help you renew your financial mind set, I am suggesting that you think of gun and butter before you spend any money. I am well aware of the fact that we are discussing personal finance. In the word personal, there are variables that will not compute. In the word personal, there are emotions, feelings, and sentimental values. Saving money does always feel good, wasting money does not always feel bad. A friend told me he could save money if he stops supporting his 27 year old daughter, but he enjoys giving her money, paying her car insurance and her cell phone bill. Thats fine. Who am I to tell him what to do with his money? My intent here is to suggest, if you decide to buy butter instead of gun, that you make a conscious decision to do so. With that in mind, remember: Gun is good financial decisions and butter is bad financial decision. Gun is good, butter is bad!

You may want to think that we need gun, you want butter. Of course I am realistic: no is going to spend ones salary buying stock and real estate which are the best guns to accumulate. We are more likely to spent 125% of our salary to eat out, buy expensive furniture, clothing, and useless gadget. You might image I consider those butter! I am hoping for a happy medium, I am hoping for a buttered gun approach, light buttered gun.