Budgets – the dirty word, that no-one wants to talk about!
Well I’m here to tell you that budgets are awesome.
They actually don’t take as long as you think to complete and give you the power to make good financial decisions and start moving toward your goals.
When we think of being on a budget, images of two minute noodles and baked beans come to mind, but that’s not it at all.
Having a budget is simply knowing what comes in every year and what you’re expecting will go out.
The idea is that you start putting to use whatever is left over, using it to save or invest toward your goals.
It’s just pen and paper
Completing a budget is as simple as grabbing a piece of paper and writing your income at the top of the page, and then listing all of your expenses below that.
Once you’ve added up all your expenses, subtract them from your income and hopefully you have something left over.
If you don’t, now’s the time to go through that list of expenses and see what you can reduce, because you can’t spend more than you earn, you’ll simply start going backward at a very quick pace.
My 8 Week Money Makeover program spends quite a bit of time on budgeting, and provides you with a template you can use on your computer to save you having to write it all down, and do all the maths!
The reason I go through this is the program is because budgeting is at the core of creating financial success.
All of the wealthiest older clients in our private client business, WE Private, didn’t get their by chance, they spent time looking at their finances from an early age and always have a clear understanding of what’s coming in and what’s going out.
So give it a try, grab a pen and paper, or search online, there are loads of great resources out there to help you get started.