If a business owner said to you that they run their business without a budget, what would you think? You’d think they were incompetent. Or perhaps lazy? Or both? But what do most families do?
When you think about it, a family is actually a mini business. There is income, there are expenses and there is, hopefully, something left over to invest and to enjoy. So why don’t most families operate to a budget? After all, a personal budget helps you to see your financial direction and helps you stay (or get back!) on track. It’s a great comfort.
One reason some people don’t put together a budget is a feeling of overwhelm, of being too busy, of feeling like life is too complex to keep track of all that. Well the good news is we can handhold you through the process and make it easy for you.
But before we look at the ‘how‘ aspects, let’s consider 3 more reasons why a personal budget is such an important tool to help you achieve your financial goals and dreams.
The cold hard reality
Let’s face it. Money is a tool that enables you to reach your goals in life. But the cold hard reality is that until you know where your money goes, you can’t make conscious decisions about how to use this tool effectively.
A budget (or spending plan!) shows you exactly where your money goes and provides a clear plan that lets you save for the things that are important to you: a new house, a new car, a comfortable retirement, a tertiary education, high quality health care, travel, or whatever your particular goals and dreams happen to be. And that’s exciting. Whatever YOU decide you want to save for and achieve, you can. With the right attitude, a focus and a (spending!) plan.
Avoid This Pitfall
There are several universal budgeting concepts that every successful budget will include, but one of the most important features of a successful budget is for it to be easy to use and suitable for your needs. Don’t try to use a generic, complex, one-size-fits-all budget. A simpler approach makes it easier to stay committed. If you stick with a realistic, effective budget long enough, the rewards will keep you motivated. In the meantime, do whatever it takes to keep yourself going.
The 3 steps for effective personal budgeting (spending planning!) are:
Your next step … Get in touch to make a time to meet. We’d love to discuss this with you and help you to get on track towards achieving your financial goals.