When it comes to building and maintaining wealth, budgeting is an important foundation block. By completing a budget, you create a snapshot overview of the movement of your money and areas where surplus income may lie. This information can be used to:
- assess your existing financial situation
- put appropriate plans in place to achieve your financial goals and objectives.
An example of this could be a budget plan involving a recalibration of your spending. For example, allocating an amount or a percentage of your money to needs, wants, and savings each income cycle. In a nutshell, a budget plan that involves recalibrating your spending can help create balance in your life. For example, a balance between your income and expenses, needs, wants, and savings, and present and future self.
In this animation, we illustrate the power that can come from budgeting and putting in place an appropriate budget plan to achieve your financial goals and objectives, both now and in the future.