I recently heard a friend of mine say, “We are educated way beyond our level of obedience.”

The statement captured me as I applied it to the world of personal finances. I do not know if my friend was the originator of this statement or if he was repeating it, but the statement is genius as it pertains to personal finances.

A budget is an excellent way to manage one’s money. Spending all of the money on paper before the month or the money ever arrives is a great way to ensure that the money is given, saved and spent the best possible way. Most of us know this, but the facts show that most of us do not prepare a written spending plan every month. We know it is good, but we just do not do it.

Consider credit cards. We all know that carrying a balance and paying interest (usually high interest) on that debt is not a positive financial event. However, I used to carry a large balance and pay minimum monthly payments on my credit cards knowing that it would take me over 30 years to pay off the debt that way. I knew it was not good, but I did it anyway.

What about our children’s college education? We know that our children are most likely going to attend college. We also know that the cost of a college education has rapidly increased and will continue to do so. But are we saving for it?

Then consider retirement. When I first calculated how much money I needed to retire well, it scared me. It was a huge number, and I knew that I needed to start saving immediately. Nearly everyone knows that Social Security is not going to be able to pay all of the entitlements to which it has committed. So we know that we must take personal responsibility and proactively save for retirement, but are we?

I learned that new cars drop in value by around 60 percent over the first four years, yet I financed a new car with 105 percent financing as soon as I left college. I even financed the sales tax! I knew that this was a poor financial decision, but I did it anyway.

As I ponder the statement “educated way beyond my level of obedience,” I realize that the No. 1 reason I have not listened to financial truths and made negative financial decisions is my impulsive nature. I see something I want, and I want it NOW! If I did not have money, I would just finance it knowing the entire time that it was a poor decision.

I still have not contained all of my impulsive nature, but I have improved substantially by working together with my bride to prepare a written monthly spending plan and discussing our financial decisions — both short and long term.