The BISON Plan

BISON stands for Budget, Invest, Share, Obligations and Necessities. It represents the suggested order in which you should plan, organize and spend your income as your receive it.

Let's take a closer look at each of the five items.

BUDGET

You should have a complete budget that accurately reflects your goals, savings plan and spending limits. This is your roadmap to your financial future. No one, and I really mean no one, regardless of their income, can be successful in their finances without a budget.

Sure, you can probably get by without a formal written budget. But you are really using a budget all the time. Many people, in their own mind, keep track of their money and what they owe each month. You also probably have a checking account and your checkbook helps you keep track of your spending. But without a formal written budget that you can check daily and stick with monthly, you will never get the maximum benefit from your money. Too many expenses just slip through the cracks. You can't keep track of everything you spend by memory alone.

That is why it is so important for every person and every family to have a personal and group budget with achievable goals. And your first step when you get paid each month is to review your budget and how far along you are to meeting your goals. The next four steps are a suggested way to spend that income if you really want to be successful.

INVEST

Invest means saving income. I don't care if it goes into a savings account or some other type of safe and secure form that earns you something, saving before spending is the most important step. Most people will save a little money if, at the end of the month, they have any money left over. Guess what? Without a budget that allows for saving first, you will NOT have any money left over. It is a human trait. We all spend what we have available. Have you ever noticed that when you make more money, you spend more? Yes, we all do it. That is why the concept of investing and saving first with a budget is so important.

By saving first, before ANY other expenses are paid, you are assuring yourself that unexpected bills and problems will not get you off your budget and personal goal track. Having a savings plan where you set aside money into saving each payday, is the number one key to financial success. Depend on yourself now and not on what might happen in the future. In fact, your budget should always allow for saving 5% to 10% or more of your spendable income each time you are paid. Then all of your expenses each month can be paid out of your remaining income.

Save and invest first. Don't wait until you see if you have any left over money. That won't get you anywhere and only encourages more spending. I don't care if you make $20,000 or $200,000 a year. If you don't save and invest it when you first receive it, you will spend it.

SHARE

No one should presume to tell you what to do with your money. However, many people plan in their budget to share some of their money with those who are less fortunate than themselves. Many people also give some of their money to religious, charitable and other worthy causes. Of course this is up to you and it depends upon your beliefs.

I will tell you that if you have the discipline to save and share each month, you will also have the discipline to stick to a budget. People who save and share every time they get paid are usually more successful with their money in the long run. It shows yourself and your family that you have the willpower and desire to stay on your budget and accumulate savings toward your goals. It is a point of great comfort to everyone in your family to know that you can reach your goals while still helping others. Those feelings will stay with you and literally force you to stick with your budget.

OBLIGATIONS

These are the expenses that must be paid each month in order for your basic needs to be met and to stay out of money trouble. Things like loan payments, house payments, rent, utility bills, car payments, insurance etc. are all obligations. Anything you must legally pay because of a contract is an obligation.

There is a great misconception about obligations. Yes, they must be paid. But the real key is to look at each obligation to determine if it can be lowered or eliminated. For example, you might feel that you are obligated to pay your cable bill. Yes, this is an obligation if you have the service. And yes, it must be paid. But can you drop some features that you don't use and lower that bill? Do you need the cable at all?

These are the things you should be looking at all the time. For any obligation or contract you must pay monthly, quarterly or whenever, ask yourself: Is this expense really necessary in my life? If not, then reduce or eliminate it. This is especially true of credit card payments. Pay off those cards as quickly as possible and don't use the card anymore unless you are sure you can pay off the balance each month.

So after investing in your savings and sharing your income, your next expenses paid should be obligations. They must come before any other spending.

NECESSITIES

This is the catch-all category of expenses. When you have saved, shared and paid obligations, it is time to take care of other "necessities". Problem is, one person's necessity is another person's frivolous spending. Who can say what is necessary in your life? Well, you can. Is the subscription to the television guide a necessity? Food is a necessity, right? But what food? Steaks at your local cafe every night? Is this a necessity?

I think you can see what I mean. It is a very confusing matter to try to sort out what is necessary, what is needed, what is wanted, what is just fun to do and what is silly. There is very little guidance anyone can give you in this area. Each person and family must figure it out for themselves.

There are a couple of hints I can give you. Before you spend any money on anything, ask yourself these two questions;   Do I really need this item?  and  How will I feel about this purchase in one week?  If your honest answer is "Yes, I need it"  AND  "I will be happy about it in a week",  then go ahead and buy it.

However, if your honest answer is "No, I really don't need it"  OR  "I will feel silly, stupid or dumb in a week",  then just walk away, smile and tell yourself,  "the BISON saved me!" See how easy that is? By doing this, you have entered the small group of dedicated savers who have the courage to say NO to unnecessary expenses. You are in a minority. And you will be better off because of it.

Pretend you have a big cowbell attached to all of your money. Every time your reach for it, the loud clanging is going to make you ask yourself, "Is this really necessary?" I sometimes wish in the past I really did have that cowbell attached to my money. Maybe the embarrassment of the noise would have kept me from making some really dumb purchases!

Okay, now that you have read the BISON Plan, you are hopefully better equiped to meet the world head-on with a financial and budget system that will help you achieve your goals. Next time a store clerk or pushy salesperson tells you that you can't live without something and how great it will be for you, think for a few minutes. Your reply just might be, "Well, the BISON won't let me buy this." Then watch their face as they try to figure that out!

BISON

Budget, Invest, Share, Obigations and Necessities. Keep that BISON in mind every time your reach for your money.

Finally, be sure to read about the Special Free Offer I have for you to help you stay a BISON person. Best wishes to you and all your friends and family.