Budgets

We have been navigating the red tape in our company to get some software tools we want to be effective. This quote from Milton Friedman kept coming to my mind.

There are four ways in which you can spend money. You can spend your own money on yourself. When you do that, why then you really watch out what you're doing, and you try to get the most for your money. Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well, then I'm not so careful about the content of the present, but I'm very careful about the cost. Then, I can spend somebody else's money on myself. And if I spend somebody else's money on myself, then I'm sure going to have a good lunch! Finally, I can spend somebody else's money on somebody else. And if I spend somebody else's money on somebody else, I'm not concerned about how much it is, and I'm not concerned about what I get.

Here is a video of Milton Friedman about this. Here is a chart of the quadrants he talks about.

We have been working in quadrant III. Trying to get our company to spend their money on tools we need. We had to convince them that they will get a timely return on their investment.

Key words: budget