If we really understood the power of budgeting, we would always utilize a budget in our lives. Why? Because creating and using a budget helps employees reach their financial goals in manageable ways. Budgets are a tool that we can create and constantly tweak to meet our financial needs and desires.
By determining where we want to spend our precious dollars before we actually spend them, we effectively take control of our money. By assigning what amounts we want to go to housing, transportation, food, entertainment, savings, etc. we pre-determine how we will use our money. For example, if we know we want to take a trip, then we can establish a “trip” section of our budget. We can then budget to save $X amount each month towards that trip. We can anticipate the trip, get excited about the trip, and dream about it as we save toward our goal. Whatever we are “sacrificing” to save for our trip will be easier in having established a goal that we are working toward.
Budgets are meant to be fluid and adapt with our ever-changing goals. They are tools allowing us to plan for and enact our individual financial desires. Their power is two-fold: first, in the utilizing of our financial goals in establishing our budget and second, in using our budget to guide our daily financial decisions. Budgeting our money before we spend it puts us in control of our money. Budgeting allows us to determine where we want our money to go before it goes anywhere. If you are looking to be more disciplined and intentional with your money, a budget may be the key. And if you have budgeted in the past, but haven’t fully utilized your existing budget in a while, it may be time to make some tweaks to bring your budget up to date with your needs. If you need help, our tools and coaches can help you with a personalized budget.
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