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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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How are you doing in taking care of your health?  Are you making progress?  Are you achieving your fitness goals? It’s time to take a health check-up.

The interesting thing about health and fitness is that generally we already know what we should be doing.  The question is ARE you doing what you should be doing. That is the goal of this health check up.  Below are a series of questions.  Simply read through them and answer YES or NO.  If you are saying YES to all the questions, then you are doing great.  Pat yourself on the back and celebrate.  If not, and this likely will be most of you, use this as a chance to refocus and set goals.

Likely, most of you will say NO to several of these goals.  If that is the case for you, don’t beat yourself up.  Also, don’t try to do everything at once.  Instead pick one of the things you said NO to and make a focused effort to improve that one area.  The power of focusing on one thing to improve will work for you as you develop a habit.

Time to get started with your check up:

Question #1 – Do you get regular and consistent exercise?

I told you these things will be obvious.  But how many of you already said no to this question?  Regular and consistent effort is the most valuable thing you can do for your health.  Exercise will help to protect you from many diseases, will give you more energy on an ongoing basis, and will help you work towards a proper body weight.

You don’t have to over do it.  Thirty to forty minutes on three or four occasions each week will make a huge difference.  Simple activity such as walking or biking can be all it takes to make a significant difference.  Look for ways to keep your heart rate up with some form of cardiovascular exercise.  The health differences will be well worth the effort.

Question #2 – Do you take a quality multi-vitamin/mineral supplement?

Very few people get an optimal level of minerals and vitamins from their food.  There are several reasons for this.  The first reason is that very few people eat enough fruits and vegetables.  In an age of fast food and frozen meals it is easy to miss getting what you need from these categories.  Secondly, our food does not have the nutrition it once did.  That is why even people who eat well do not get what they need.  The minerals in food come from the soil, and soil quality has decreased substantially over the last century. More and more, farmers are forced to rely on fertilizer to grow crops.  That, combined with the lack of nutrients in the fields, means the food is not getting the minerals from the soil. Because of these factors, the Journal of the American Medical Association recommends that every adult take a multi-vitamin.

You may understand that you need a supplement, but with so many brands on the market it is difficult to know what to take.  Most mineral supplements have a very low absorption rate.  That means only a small amount of what you take in gets used by the body.  Further, researches have recently discovered that in most of these supplements have a problem. The minerals break down and destroy the antioxidants from the vitamins. There are good products available, just take a time to research your options.  (Personally I use this product: CBS NEWS CLIP VIDEO: http://www.youtube.com/watch?v=q8qsmcJ1HrY I can help you get them wholesale if you email me at dannygamache [at] gmail [dot] com.)

Question #3: Do you eat enough ‘greens’?

The food guide pyramid recommends three to five servings of vegetables a day.  Within that category, green vegetables are the most packed with minerals and nutrients that can make a big difference in your long-term and short-term health. Because of these benefits, greens should be your primary source of vegetables.  Even if you are taking a great multi-vitamin you need to make sure you get enough green vegetables.  Green vegetables give you a greater health return than anything else you can eat. (more information)

Question #4: Do you take time to stretch?

Beyond basic exercise, stretching is an extremely valuable health habit.  It’s amazing the difference that I feel when I take time to stretch regularly.  Stretching can increase your energy level, improve your flexibility, and reduce tension.  Everyone should stretch daily.  You can do simple stretches as a break in your work day or when you watching television or listening to a podcast after a busy day at work. (more information)

Question #5: Do you get enough sleep?

Don’t skimp on your sleep. In a fast-paced life it’s easy to get in the habit of sleeping less and less.  And while your body may be able to handle this for a period of time, in the long-run it hurts you every time you cheat yourself on sleep.  The amount of sleep that everyone needs is different.  Most adults need between seven and nine hours of sleep a night, although there is no magic number.  Most people sleep less than they need to for optimal health.  The amount and quality of your sleep has been connected to many diseases including obesity, diabetes, hypertension and depression. (more information)

Question #6: Do you drink enough water?

Drinking enough water is another well known health tip that is easy to miss out on. Drinking water can help you have more energy, lose weight, and works to flush your body of toxin. There are number of different formulas that help you know how much water you should be drinking.  One easy option is to follow the 8 X 8 rule.  This rule states that you should have 8 glasses of water each day that are 8 ounces each.  Based on this, how are you doing? (more information)

Question #7: Do you get enough Fiber?

Recently, more and more people have come to understand the benefits of getting enough fiber in your diet.  Fiber is most well known for helping with digestive health, and while this is true, there are many more reasons that you should be getting enough fiber. Fiber also helps with weight loss, and has been shown to help prevent heart disease, cancer, diabetes, and kidney stones.  (note: one of the reasons green vegetables are important is because they are high in fiber) (more information)

Question #8: Is your weight within a healthy range?

If you are overweight your risk of diseases increases substantially.  As such, for many this question should be your first focus area to improve.  Thankfully, many of the other things on this list will help you develop a healthy lifestyle that promotes weight loss. For many, dropping their body weight by 10% could be the most important thing they can do for their long-term health.

Remember, losing weight is not about dieting.  Rather it’s about your complete lifestyle: eating the right foods, and exercising.  It’s about creating habits.  One effective habit that helps people manage their weight is to eat smaller meals more frequently.  Eating a small meal every two to three hours will help to increase your metabolism and improve your health.

How did you do on the checkup?  Did you pass with flying colors?  If not, what do you need to work on?  Start with one area to improve and build a habit around that area.  Your body will thank you.

Written by:
The Success Professor – Danny Gamache
Follow me on Twitter: @Successprof

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