Budgeting is one of the most important parts of any financial plan and is really the starting point for any financial journey. You can save and invest all you like, but there is no better way to improve your financial situation than to budget where your money is coming from and more importantly, where it is going.
In this section of the blog I’m going to run you through why budgeting is so important, what you need to do before you begin budgeting in order to do so effectively, how to prepare a budget and how to proceed thereafter. Whilst budgeting might seem like a bit of a daunting process, it’s actually quite simple. The most difficult part is beginning, but once you have prepared your first budget, the rest is just maintaining it on a monthly basis. So let’s dive in.
Before You Begin Budgeting
Part I – Why Budget? – A review of why budgeting is so important
Part II – The Past Matters – Why it’s important to understand your past before you proceed with your future
Part III – Why You Need a BHAG – How a BHAG will help you reach your financial goals
Part IV – Be SMART About It – Why your goals need to be SMART in order to reach your BHAG
Preparing Your Budget!
Part V – My First Budget – The first stepping stone in creating your very own budget
Part VI – Predicting the Future & Setting Goals – Your budget needs to incorporate your goals as well as predicting future expenses
Part VII – The Zero Sum Budget – Every dollar in your bank account needs a job!