Budgeting is something many people put on the back burner. It’s a simple process, but the thought of building a budget can seem daunting. Creating a budget is more than just saving money you could be spending, it’s about creating a balance between income/expenses and short-term/long term goals. Long term goals can’t be reached if you don’t address your plans for the short term. When you sit down to create a budget, think about it as a living plan that you will monitor and will adjust as needed.
During the budget creation process, the first steps in constructing a financial plan have begun. Along the way you’ll start to answer many unknown questions you have had before you began digging into your finances. How do we even start to pay down debt if we don’t have any extra money? How do we buy a house? How do we save for a vacation while still putting money in the bank?
I put together a quick start flow chart that lays out the process to begin your budget and pave the way to create a living financial plan. Remember, a financial plan isn’t something you can set and forget. Once a plan has been implemented, it needs to be monitored and updated as life happens.
“A goal without a plan is just a wish” – Antoine de Saint-Exupery
Talk to us about your financial plan. One of the biggest values we provide is helping clients balance short term wants/needs with their long term goals.