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 the feeling of being overwhelmed, 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.
- Most of your money is already spoken for long before you get it
The money you earn has already been promised to keep the electricity on, make the loan repayments and pay for the insurance. Most of what many people think of as budgeting is really honouring the commitments you have already have.
Now since we are all honest people and plan to pay these bills, the first step is to track these bills and see what is left over for your day-to-day living.