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You have heard it said many times that you need to have a balanced budget. The general understanding here is that you need to make sure spend less than you make. Unfortunately for many this gets complicated. People struggle to follow a budget. That is why I use a “Simple Budget Technique”.

Beyond having a balanced budget where incoming funds and outgoing funds are balanced, it is also important to balance where you spend your money; you should spend money on the things that are really important – both now and into the future. This involves creating an appropriate mix of how you spend your money and what you spend your money on. This is balanced spending. Here are four categories everyone should consider having a budget for:

1. Health

Increasingly, people are starting to pay attention to their health. There are a lot of ways to improve your health for free, but sometimes you should invest money in your health.

I’m not going to recommend a set amount to spend on your nutrition. But think about it – how much money do you spend on your car? I calculated out the other day that between insurance, oil changes, and basic maintenance (not even gas), I spend close to $4 a day on my car! How much then should I spend on my most valuable asset – my health?

Your health budget might include money for:

Better food – Good food costs money. Unless you have your own garden or live on a farm, it will cost you more to eat natural organic foods and to eat more fruits and vegetables. All of these can be valuable investments.

Fitness – While many people will choose to exercise for free, there are a number of things that you may want to spend money on. If you run or walk a lot you should invest in a pair of good running shoes. Some will want to invest in a gym membership, or purchase a quality piece of exercise equipment. Where I live in Canada, there are several months of the year where outdoor activities are limited due to the cold and snow. This is why my wife and I purchased an elliptical trainer. It gets lots of use, even in the summer. You might choose to get a membership at a golf club or tennis club. Choose something that you will enjoy and will keep you fit.

Vitamin/Minerals and Supplements – More and more today people are realizing that good nutrition is needed to live a life that is full and vibrant. It is almost impossible to get the nutrition you need from the food you eat. It is just no longer there. Soil quality has decreased substantially over the last century. Further, much of the food we eat is shipped long distances and loses its nutritional value over time. In fact even the American Medical Association now recommends that everyone take a multivitamin and mineral supplement. Beware in your shopping because most minerals have a difficult time absorbing in the body – in fact the average absorption of store brand products as been shown to be only 3-6%. You should be able to notice a difference after a couple of months taking the supplements.

2. Self-Improvement

If you are not growing and developing you are falling behind. We live in an information world and technology in almost all fields is expanding exponentially. In fact it is said that you need to double your knowledge every 7 years. Thankfully, there are more and more free sources of training and information such as blogs and podcasts. Beyond that there are some great ways to spend a little and invest in your self:

Books - Reading is a great way to gain knowledge and to keep motivated. I make it a practice to always be reading something motivating, inspiring and educational. If there is a subject you want to learn about, read a few books on it and you will far ahead of most people. And with reading you don’t have to stop learning about something. If you are passionate about a subject, just keep reading. Here are my top book choices to get you started.

Audio CDs - Many top speakers sell their material on CD or DVD. I also purchase blank CDs and burn my favorite podcasts on to them for listening in the car. One popular choice is to learn a language. Many programs combine audio recordings with online or computer-based learning to help you learn a new language more quickly.

Conferences - Make sure that at least once each year you attend a conference related to your personal growth. This might be a conference specific to your field, or a general personal development conference. I find it best to plan to attend a conference that is some distance from your home. Use it as a personal retreat weekend to refresh and connect with your goals.

Seminars or Classes - Look for other opportunities to learn. These might be seminars put on by the local Chamber of Commerce or you may take a class at a local college or university. These can be fantastic ways of learning a new skill or staying up on your industry.

Coaching - Everyone needs a coach. A coach is someone you can bounce ideas off of, share your goals with, and go to for advice. A good coach will keep you accountable to your goals, help you recognize your strengths and weaknesses and inspire you to achieve your best. I speak with a coach every two weeks, and I serve as a coach to many others.

3. Giving

Look to give money away. There is a clear connection that occurs between giving in receiving. The people that give money away tend to receive more back. I don’t think there is some magic reason for this happening, but I do think it works in our psychology. If you give away money, you naturally carry with you an abundance mentality. You are able to understand that more money will come and you will be alright even though you give it away. No matter whether you earn a lot of money, or very little, you should start giving now. A good place to start is by giving 10% of your income. For some, this may seem like a lot, and yet if you set it up as an automatic gift each month you will hardly notice it. And yet, it will be able to make a significant difference in the lives of others. Some ways to give are:

Support a meaningful cause - If there is a cause that is particularly meaningful for you, look to support that cause. For example, you may be passionate about cancer research. If so, look for ways to give to that cause.

Support your local church, synagogue, or worship community - If you attend a church or similar community you should be involved in supporting it. Not only does it support the ongoing functions of the church itself, but churches often provide an opportunity to pool funds and use them to accomplish things that individual donors would not have been able to do.

Support a microenterprise - I’ve previously written about how entrepreneurship can play an important role in poverty alleviation through microcredit. You can contribute as well. Kiva.org partners individual lenders with entrepreneurs in less developed countries. You loan a small amount to them, and it is repaid back over the next year. You are then able to take the same money and loan it to another person.

Sponsor a child - One very rewarding form of giving is to sponsor a child. There are many organizations that allow you to sponsor a child in a less developed country. Your funds go to help pay for food, clothing and education for that child. You are often able to send and receive letters from your sponsor child providing for a hands-on connection to your giving.

4. Investing for the Future

Investing is a vital step. Some people have been scared by the recent economic downturn and have retreated away from investing. You shouldn’t let fears about the economy stop you. Yes, you may want to learn a little bit about risk and stay away from over optimistic views of investments in areas such as real estate, but it is still important that you save for the future. There are several things you should be saving for:

Retirement/Long Run - Investing for your retirement and later life is vital. No matter how much or how little you are making now, invest 10% in your long-run plan. Be diligent and don’t cheat on this plan. Stick to it, and you will have a nice nest egg ready for your retirement. It is never too early or too late to start investing – you’re never too young or too old. With tax deductions given for starting retirement savings programs, saving for your future can even be more valuable. Make sure you’re making your money work for you. Investments can serve to leverage your money, allowing you to earn even while you sleep. Do it now!

Emergency Fund - We all know now that job stability is a thing of the past. Beyond that, life is full of surprises, and some of them are very costly! Having an emergency fund in place provides peace of mind, and stability when those surprises occur. Author and radio host Dave Ramsey suggests having an emergency fund that will cover 3 to 6 months of living expenses. This is a great guideline that everyone should follow.

Education Fund - If you have children, it is wise to put money away into an education fund, to help them pay for college education. Even if you are hoping your child will pay for their own education, having a small fund in place can make a big difference for them. Ideally, put some money away when your child is born and allow it to grow all the way until they are ready to go to college. If you missed that time, start now anyways!

Asset Replacement - you should also have money to replace your personal assets. You can use this to save for and buy a car with cash, be prepared when something breaks, or as part of a planned replacement strategy.
Having a balanced budget means more than keeping income higher than expenses. You need to have a balanced budget to ensure your spending habits match your long-term priorities. Invest money in your health, your personal development, your future, and in others through giving. Only when these spending choices match your values and goals will you have a real balanced budget.

Written by  -
Danny Gamache – The Success Professor
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For years people believed it was impossible. It was impossible that a man could run a mile in under four minutes. Doctors and Scientists said that the human body could not possibly achieve such a feat; some suggested that the body would break apart before such a speed could be reached. Everyone agreed: the four minute mile was not possible.

Well, not quite everyone. After breaking the 1500m record (the mile is 1600m) Roger Bannister started to believe. He started to believe that the four minute mile could be broken. And that belief made all the difference. It led to increased training and an all out effort to break the barrier.

Then on May 6, 1954 this happened:

Roger Bannister had done it. He had broken the four minute mile; a barrier thought impossible. Now he had proven that it could be done. Other people now had the evidence that the four minute mile could be broken.  Other people had the belief.

In the days and years that followed, that belief turned into results:

• Just 46 days later Jim Landry of Australia broke the record again.
• Less than two months after that both Landry and Bannister both broke four minutes in the same race
• Since then thousands of people have run the mile in under four minutes
• In the next 30 years the record was broken 16 more times
• The record now stands at 3 minutes and 43 seconds
• Even high school students have broken the four minute mile
• In 1997 Daniel Komen of Kenya double the feet running TWO miles in LESS THAN EIGHT minutes.

Each of these feats took Roger Bannister breaking the record to show the way. To show them that it was possible. To break the barrier that others had put up. Once the barrier was broken by Bannister, everyone else followed suit.

What is your “Four Minute Mile”?

What is the thing in your life that everyone thinks is impossible? What is the thing that you keep hearing can’t be done? Maybe you even believe it. Perhaps it is a goal you have given up on, or a sales target you think can’t be achieved. It might be the next step to success in your field.

Your four minute mile might even be something that others have accomplished. It just might seem impossible to you. You need to treat this goal as a four minute mile, and know you can do it, that you can break your four minute mile.

“Every time I ran the mile I was aware of my own weakness, there was some opponent who could give me a hell of a fight, so I never went into a race with a sense of invincibility. I always had that feeling of fragility and nerves which made me run faster.” – Roger Bannister.

Lessons From Bannister’s Four Minute Mile

1. You need support

Bannister didn’t do it by himself. As you see when you watch the video, he had teammates to help pace him. They went out and set the early pace for Roger to follow. Behind the scenes he had coaches, training partners, and a support system. To break your four minute mile you need support. Bring the right people around you that can help push and encourage you towards success.

2. Facing criticism

Bannister faced significant criticism as he worked towards his goal. First, he faced criticism that came from having a goal that everyone though was impossible. He was wasting his time. Pursing an impossible goal is a waste! He also faced criticism about his unorthodox training methods. People had an understanding about how to best train for these kinds of races, and Bannister wasn’t following those methods. Roger faced this criticism and went right past it. He didn’t let the criticism affect his belief and the way that he saw his goal.

3. Push through the pain

Reaching any worthwhile goal requires pain and discomfort. In athletics that is often a physical pain, but your pain might be emotional or mental stress. Pushing through the pain and getting out of your comfort zone is vital to success. Bannister said:

“The man who can drive himself further once the effort gets painful is the man who will win.”

4. Barriers are often mental not physical

Scientists believe that the barrier to reaching the four minute mile was a physical barrier. It was not. It was a mental barrier. No one broke the four minute mile, in part because no one thought it was possible. Certainly it wasn’t easy, but it was possible. The same is often true for our goals. What we think we can’t achieve is really only a mental barrier, not a physical barrier. If you believe in your abilities you can achieve far more than you imagine.

What is your four minute mile? It is likely something that you think you can’t do. A goal you think you can’t reach. It is mental. To break through and beat your four minute mile you need to start by believing. Believe that it is possible. Once you have that belief you will still need to work hard. You will need to train, face criticism and push through the pain. But by surrounding yourself with a support team and persevering, you can break your four minute mile.

I’ll leave you with this inspirational video that helps apply Bannister’s four minute mile to life:

Written by:
Danny Gamache – The Success Professor
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Hi everyone,

Another week is complete.  It was a great week for me in many of my goals.  Here are a few excellent articles that I came across this week that will help you succeed.

1. Michael Hyatt asks, “What Keeps You Going When You Want to Quit?”

2. The 150 Project shares, “Lessons from My Conducting Debut.”

3. At The Art of Nonconformity, Chris Guillebeau, writes a great post on “Personal Responsibility and Showing Up.”

4. Career Renegade, Jonathan Fields, helps you improve your blog by asking “What Does Google Think Your Website is About?”

5. Goodlife ZEN shares “Why Getting Up Early  Enhances Life and How to Beat the Stay-in-bed Blues.”
Bonus:

Elsewhere on the web: On my other blog, I share tips on “Improving Your Follow-up With Prospects.”

From the archives: “A Wicked Example of Customer Services.”

Enjoy

Danny Gamache – The Success Professor