Sunday, March 01, 2009

The Frog Principle and Budgeting

Casually flipped through one of the books bought recently - "Follow Your Heart - Finding purpose in your life and work" by Andrew Matthews... There, one section talked about the Frog Principle, which caught my attention.

Yes, the story of the boiling frog is well-known... the moral of the story to being sensitive and alert to changes in the environment, otherwise, 死了都不晓得是什么一回事。

But, the add next analogy echoes something that we should look into very seriously... and I believe not many would associate it to... the importance of budgeting and spending. This struck me more especially when recently, we are working on some budgeting for our department and expenditure for some school publicity events.

... When you overspend on your budget by $10 in a day, it's no big deal. But if you do it again tomorrow, and the next day, and the next, you end up broke. For people who go broke.... it usually isn't one big disaster - it's a bit of today and a bit of tomorrow - and then one day "Kaboom!" - and they say: "What happened?"

Life is accumulative. One thing ADDS to another - like the drops of water that wear away the rock. The frog principle is telling us to watch the trends...

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