We are in the midst of the enormous marketing frenzy focused on the annual holiday shopping which leads to spending money. All advertising encourages and entices you to SPEND, SPEND, SPEND and now there are so many convenient ways to spend. This season let’s control our spending and get ready for 2013. We want to enter the New Year with some financial peace of mind.
One secret to reducing impulsive spending is the B–word… Budgeting. Before you stop reading, consider that budgeting can be as easy or difficult as you make it but ultimately it is your responsibility to know what money is coming in and what money is going out. Budgeting allows you to take control over your money instead of money controlling you.
Here are some thoughts to ponder which can change your mindset about money and budgeting:
Knowledge is Power – Budgeting builds the roadmap and reflective picture that reveals where every dollar is spent and opens the door to know exactly how much money you actually need to maintain your level of living.
Builds Discipline and Organization – Organizing finances helps you understand spending patterns and habits as well as establish positive behaviours. This opens the doors to financial discipline and control.
Transforms Money into a Tool – Instead of spending impulsively, money will be valued as a tool or means to reach and fulfil needs, goals and dreams. Budgeting will cause you to understand the value of money, influence of money, and how money impacts your lifestyle.
Reveals Waste – Budgeting aligns the actual expenses against the forecast estimate. By reviewing, this reveals the incorrect use of money and spending habits (both good and bad). With the revelation of waste, corrective actions can be created as well as better spending habits.
Brings Peace to the Home – Budgeting brings truth and awareness to money matters. This is one way to demonstrate openness and transparency for the family because it documents all sources of income, expenses, credit, and debt. Budgeting generates the necessary dialogue to meet financial goals.
Aligns Financial Goals – “What do are my financial dreams?” “What do I want my tomorrow to look like?” Budgeting will cause you to intentionally prepare for tomorrow as well as monitor your financial activities priorities and activities.
These are just some of the benefits to budgeting. Think about them… Are you willing to step out of your comfort zone and try something new starting January 2013?
Remember our goal is to get Financial F.I.T. (Focused, Involved to Transform your life).
Until next week,