Importance of Budgeting and Targeting expenses

Many people say "I do not have time to make a budget and to record the expenses" but the truth is "Do not waste your time, make a budget and note the expenses"

Many people do not want to hear about budget, even in business not all companies have it. For many it is a waste of time, it is not productive work, it does not generate income but the lack of budget can generate many losses, even bankruptcy. What do you prefer to hear BUDGET or BANKRUPTCY?

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They see it as a tie, a straitjacket, a loss of freedom. They do not realize that the opposite is true, the budget is a help tool, a PLAN that helps achieve personal or professional financial goals. And that is what gives you FREEDOM.

The truth is that I used to make an annual budget in the company but not on a personal level but when I started to train in Financial Education I understood that it was so important to make a budget in your personal life as a professional. Why? Because if you do not know where you are, you do not know where you are going.

When you see that a budget is simply spending your money with intention, you will really experience more freedom than before. You control your money and not your money to you. Many people say they have found even more money when they created a realistic budget and have stuck to it.

I recommend a monthly budget for your personal and annual finances of your business.

Here are some tips:

• Give three to four months to start working. It's not going to be perfect the first time you do it. As everything can be improved. It cost me time.

• Pass all known expenses to paper before the month begins. There are fixed expenses such as rent, mortgage, insurance, etc. that you already know and others that you know more or less like water, telephone, etc. The rest use common sense and see what you usually spend and what you foresee. As I said, it takes a few months to have it ready.

• Do not underestimate the category of food. Most people do not put enough funds in that category. We eat more than meets the eye, I was surprised the first time I added up all the monthly food expenses.

• Do not use the budget as a tool to discuss with the spouse and to put in face what he spends.

• If you are married, it is recommended that the spouses make the budget together. I know, it can be complicated.

These are tips, they are not mandatory, of course, each person has to do what works best for them and does not have to be what works for me or others.

The budget is the best help to not spend more than you want. Each week you study what expenses you have had, the remaining expenses of the month you foresee and how much money remains to be spent.

When you are spending your money with intention, many things change around money ...

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