Importance of Budgets
By: Connie Holt, E.A.
The Henssler Financial Group Position Paper

Want to achieve your goals in life? With many of your goals, success will be dependent upon monetary means. To be successful in reaching these goals, the basic starting point will be creating a budget and living within that budget.

Budgeting is a way of life and not a means of torture. We should put away the old myths of budgeting being a nightmare and develop a new attitude. Most of us go through school focused on a career or job training that teaches us how to earn money, yet gives us no training on how to spend money — wisely, that is. Once we are in the Real World we are surrounded by realities such as rent or a mortgage, groceries, children and endless bills. We would never assume that anyone could build a house — the carpentry, plumbing, electrical, etc., without ever learning how to read or draw a blueprint. Yet we do not receive the training on spending money wisely that we need to achieve success. We are expected to hit the Real World automatically knowing how to make it all work.

Why Budget?

A budget is the most effective financial management tool available to all of us. Whether you are earning thousands of dollars or hundreds of thousands of dollars annually, a budget is the most fundamental part of achieving your goals in life. It is extremely important to know how much money you have to spend and where you are spending it. There is an important distinction between creating a personal budget and deciding where to invest your extra income. A budget is the first step in maximizing the power of your money.

What do You Accomplish with a Budget?

Budgets are the foundation to your financial success. Once we are on our own and begin making, spending and investing money, budgets are our plan to guide us. Budgeting is about planning, which is crucial to produce a desired effect.

What is a Budget?

A budget is a money plan. With it, you can organize and control your financial resources, set and realize goals, and decide in advance how your money will work for you. A budget can be as simple as it is powerful. The basic idea behind budgeting is to save money up front for both known and unknown expenses.

Hopefully, this article will convince you that a budget is a necessary tool in your life to assist you in your financial success. For more information regarding this topic or any other tax-related issue, please call The Henssler Financial Group Tax & Accounting Division at 770-428-4025.