I have spoken about this several times during my periscopes. I have a budget that was given to me by my father over for 25 years now. I have been able to use this to help myself purchase 4 franchises, 24 properties, invest in stocks and be able to go on vacation. Budgets can be powerfully paralyzing to some of you. It does not have to be. It is only information. You can’t and shouldn’t make decisions with incomplete information. Some of you are flying blind and don’t even know it.
If there is only one thing you take away from me, let it be the significance of creating and maintaining a budget.
Here are the reasons why you need a budget:
Accomplishing Financial Goals
Most of you say you want to start your own business, go backpacking through Europe, or buy a house. However, every year that goes by you don’t have enough money. Why is that? More than likely, you don’t have a budget. If you don’t know where your money is going, then it is your own fault. If you aren’t planning those investments, then you are never planning to accomplish them. The art of compounding your savings is the key to building wealth or making investments.
Peace of Mind
Have you ever gone to the mall and found something you felt you needed to have? Did you ask yourself, “Can I afford it”, not have the answer, and still buy it or put it on a credit card? How scary is that?!? You need to make sure that you are self aware of your debt and buying power before you make any further purchases. Imagine having the information that will help you decide whether you can afford it or not. Just because you have money in the bank at the time doesn’t mean you will have it at the end of the month after you pay off your bills. Budgets keep your mind at ease. You will know how much money you will have left over after your bills and whether you can spoil yourself a bit.
Becoming Debt Free
Almost everyone in the world has some form of debt. Getting out of a debt is as much a skill as learning how to read. If you are not educated on credit card interest rates, student loan interest rates, mortgages or any other form of debt, you could find yourself drowning in endless payments and not making any of the debt budge. If you want to become debt free, you need to have an action plan of how much you can dedicate to the debt and how long it will take to pay off. If you don’t have this, you might just be paying interest on your debt. Educate yourself now and start leveraging your credit score for using debt in your favor.
Good Credit Score
I touched on this in the previous section, but having a budget allows you to leave yourself enough money to pay your debt off on time. This will build your credit score and help you in the long run when applying for a loan. Don’t wait too long to build your credit either. Time could be your ally or your enemy when auditors evaluate your credit history.
I know that it may seem like a daunting task, but don’t worry, I am here to help.
You can email me at [email protected]