Rule No. 1: Get the facts down on paper.
When Arnold Bennett started out in London fifty years ago to be a novelist, he was poor
and hard-pressed. So he kept a record of what he did with every sixpence. Did he
wonder where his money was going? No. He knew. He liked the idea so much that he
continued to keep such a record even after he became rich, world-famous, and had a
private yacht.
John D. Rockefeller, Sr., also kept a ledger. He knew to the penny just where he stood
before he said his prayers at night and climbed into bed.
You and I, too, will have to get notebooks and start keeping records. For the rest of our
lives? No, not necessarily. Experts on budgets recommend that we keep an accurate
account of every nickel we spend for at least the first month-and, if possible, for three
months. This is to give us an accurate record of where our money goes, so we can draw
up a budget.
Oh, you know where your money goes? Well, maybe so; but if you do, you are one in a
thousand! Mrs. Stapleton tells me it is a common occurrence for men and women to
spend hours giving her facts and figures, so she can get them down on paper-then,
when they see the result on paper, they exclaim: "Is that the way my money goes?"
They can hardly believe it. Are you like that? Could be.
Rule No. 2: Get a tailor-made budget that really fits your needs.
Mrs. Stapleton tells me that two families may live side by side in identical houses, in the
very same suburb, have the same number of children in the family, and receive the
same income-yet their budgeting needs will be radically different. Why? Because people
are different. She says a budget has to be a personal, custom-made job.
The idea of a budget is not to wring all the joy out of life. The idea is to give us a sense
of material security-which in many cases means emotional security and freedom from
worry. "People who live on budgets," Mrs. Stapleton told me, "are happier people."
But how do you go about it? First, as I said, you must list all expenses. Then get advice.
In many cities of twenty thousand and up, you will find family-welfare societies that will
gladly give you free advice on financial problems and help you draw up a budget to fit
your income.
Rule No. 3: Learn how to spend wisely.
By this I mean: learn how to get the best value for your money. All large corporations
have professional buyers and purchasing agents who do nothing but get the very best
buys for their firms. As steward and manager of your personal estate, why shouldn't you
do likewise?
Rule No. 4: Don't increase your headaches with your income.
Mrs. Stapleton told me that the budgets she dreads most to be called into consultation
on are family incomes of five thousand dollars a year. I asked her why. "Because," she
said, "five thousand a year seems to be a goal to most American families. They may go
along sensibly and sanely for years-then, when their income rises to five thousand a
year, they think they have 'arrived'. They start branching out. Buy a house in the
suburbs, 'that doesn't cost any more than renting an apartment'. Buy a car, a lot of new
furniture, and a lot of new clothes-and the first thing you know, they are running into the