I love living in London. The combination of ancient and modern appeal to me. However, the one thing about it is that after a while, the important things lose their significance.
Take for instance, “mind the gap”. Every Londoner knows what that means – to be mindful of the gap that sometimes occurs between the train and the platform edge. Not paying attention can be life threatening. There have been times when I haven’t always paid attention and had a few near misses.
It’s the same with our money. We need to “mind the gap”. The gap between what we owe and the cash we have. If they are equal, then ok, not great but okay. Having more expenses than the cash to pay is worse. Notice I say cash not credit. Paying your expenses with credit has its own problems.
Minding the gap in this case means we have to create a budget or a spending plan (I know, how boring) but it is important to have a picture of our cash position. Cash means money that is readily available to pay what you owe now or will in the near future.
Not minding the gap between the cash we earn and what we owe could lead to a very nasty fall indeed.
So for inspiration, here are 5 reasons to “Mind the Gap”
- It is important to your financial well-being that what money comes in covers what must go out.
- It is harder to achieve financial goals when you have less cash coming in than the amount going out.
- You have greater control over your financial future. After all, it’s easier to control what you have than what you don’t have.
- It stops you falling into debt.
- It helps you understand one of the fundamental principles of money management.