So Why Budget?
Based on our experience and the feedback we get from helping clients we have developed key points below.
Step One: Organize cash flow
Organizing your cash flow helps you visualize what you intend on doing with your hard-earned money and where your money is going. Research supports when people spend their money more consciously it leads to deeper satisfaction.
It is hard to track where your money goes without documenting it. I work with peoples’ finances everyday, however, I still noticed gaps in my own personal finances prior to taking my own advice in establishing a budget.
Step Two: Reduce Stress
By thinking about your long-term goals, you will begin to have an idea of how much money you need to set aside to reach YOUR personal goals as well as how much you have left for your day-to-day life.
This helps to establish priorities and identify what is most important to you. You will be surprised how quickly those little things add up. Decision making is strenuous, so eliminating uncertainty and understanding the intention behind your savings takes the thinking out of all those decisions.
Step Three: Goal Achievement
It is imperative to get clear on your goals and start saving now for what you want, need, and for those unexpected things that crop up in all our lives.
Budgeting provides you with a plan on how you will achieve both your short term and longer-term goals. Counter to what many people think it does not mean you cannot have fun today; it’s about making sure you are using your money wisely on things and experiences your value.
Step Four: Visualization
Establishing a budget lays all the cards on the table and helps you to “see” clearly. For most of us, it does not become real until we see it in black and white.
Seeing our plan gives us confidence that we can do it. This builds positive momentum and often time people find they can achieve their goals even faster.
Start smart and you can live for today while planning for tomorrow. Check out this sample budget and follow up with Michael Bonomo, click here to book your meeting to make the most of your money.