The easiest way for me to describe a budget; it’s a PLAN FOR YOUR MONEY.
It’s YOU telling your money what to do and where to go so when the money hits your account, you don’t need to think about what to do with it, you’ve already decided.
We seem to plan so many things in our day to day lives (such as what to eat for dinner, how to get the kids to their activities on time or a catchup with friends) and we definitely make plans for the bigger, more exciting things like a wedding or how many cities you’ll visit on your next holiday. But the one thing that most people never ever consider doing is creating a plan for their money.
Think that you don’t need to budget? Think again!
Everyone should know exactly what their income is, where it is coming from and precisely where it goes every month (with very few surprises). Now I know that there’s nothing sexy or fun about a budget, but if you keep it simple and easy to use, it can be a very powerful tool that allows you to take charge of your finances and set you in motion for achieving your investment goals.
What will a Budget really do for me?
If you want to have control over your money, avoid the stress of financial worry and start planning for bigger and better things, without a doubt a budget is the best place to start. A budget isn’t just for people with lots of money or for those who need to know where every cent is going. It’s something that everyone should consider doing at some point regardless of how much you earn. It’s your money we’re talking about … your hard earned money … so take responsibility for it.
Imagine a budget is like a map, but for your money. No map = no direction.
Sure, you could probably still make do and find your way, but imagine the difference in the results if you had a map that was giving you focus, direction and had a destination planned out.
A Budget will:
Open your eyes to knowing exactly where your money is going
Give you back control so you start deciding where you’re spending it
Organise your money so that you can easily review it at any time
Help you to save for the things that are important to you
Keep you on track to reach your financial goals
A budget doesn’t need to be all about counting every dollar and saving every spare cent. Nor is it about cutting out all the fun things in your life and only going out once every 4 weeks! It’s about putting in a little effort to set up a system that will benefit you in so many different ways