Create A Practical Budget To Reach Your Financial Goals
Many people dread the idea of sitting down to make a comprehensive budget of their finances but it’s a necessary process to creating financial freedom. Creating a budget puts your finances into perspective to ensure you are making the most of your hard-earned money and allocating it in a way that improves your livelihood. It provides clarity and helps you be realistic about your financial goals. Whether your goal is to cover all of your bills and make sure you have a rainy day fund, or whether your saving more specifically for college or a home, budgeting gives you an action plan to do so.
There are hundreds of budgeting methods that experts have come up with over the years but at the end of the day the process boils down to two actionable steps: create more sources of income or decrease your debt and spend less. In a sense the notion budgeting is the same as picking a diet plan out of the hundreds that are on the market. There are so many overwhelming options but they each have the same core elements. Creating more sources of income is to increase exercise, as creating a restrictive diet is to decreasing your bills and liabilities. Both require a strict discipline and will power in order to reach your goals.
While we could create a never-ending list of the types of budgets available out there and the different “finance gurus” to follow, none of this would be beneficial until you are ready to sit down yourself to assess your financial situation. As the old saying goes “When the student is ready, the teacher will appear”. Everyone’s situation is unique and there will never be a one-size fits all budget because we all have different incomes and different lifestyles. A fulltime independent freelancer would have no use for a budget created to manage the finances of the everyday 9-5 corporate employee. The CEO of a small startup will not benefit from the budgeting methods of someone living on retired income. The only real and reliable way to create a budget is to take a look at your situation and goals and find a bridge in between them. Do what makes me the most sense for your circumstances.
With that being said, when you are ready to sit own to organize your finances create a list of all your bills and liabilities and a list of all of your income and start from there. Creating a practical budget doesn’t have to be a tedious aunting task. Once you have your budget in place you can build an actionable plan to get you moving towards securing the financial future you have in mind.
If you need help creating a budget or just want an analysis of where your finances stand schedule a consultation with us today. We can help you prioritize bills and offer you personalized advice to put you in a position of control. We can tailor a financial road map that is customized for your specific situation.