Cash flow Management is a very crucial aspect of your financial health and Life. Budgeting makes you master of handling Short , Medium & Long term Cash flows
Enables you to communicate with your significant others about money: If you share your money with your spouse, family, or anyone, a budget can communicate how you use money as a group. This promotes teamwork on working for common financial goals and prevents conflict on how money is used. Creating a budget in consultation with your spouse will avoid conflicts and resolve personal differences on how your money is spent. Budgeting teaches family members spending responsibility and accountability.
Not just Spouse but you also lead a very good eg for your children – if you Budget well , obviously your children will learn that life skill from you…or viceversa – Children can teach their parents or elders by doing proper Budgeting… All the inherent property ,wealth , jewellery , Investments etc will be passed on to you by your parents – so think about it – How important it is to learn Budgeting ?
- Provides you with an early warning for potential problems: When you budget and take a “big picture” view, you will see potential money problems in advance, and be able to make adjustments before the problem appears.
- Helps you determine if you can take debt and how much: Taking debt is not necessarily a bad thing if the debt is necessary or you can afford it. Budgeting shows you how much a debt load you can realistically take without being stressed or if taking the debt load is worth it.
- Enables you to generate more Money, Multiple source of Income & Passive Income: In budgeting, you get to identify and eliminate unnecessary spending like late fees, penalties and interests. These seemingly small saving can add up over time. If you Budget properly – automatically you invest the money in a better way where you can generate the additional source of income by way of returns and eventually also generate passive Income…This way you achieve true Financial Freedom
Be very SMART in designing your SMART Goals –
Be Specific
The goal should be Measurable
It must be Achievable
Absolutely Realistic and Time bounded
It’s not always about how much you are earning , How much you are spending , How much you are investing or How much you are growing your money? After earning, spending, investing – it’s also about achieving your dreams & goals with the help of that money, Make the best use of that Money, Lead a very good Life with the help of that Money, Making yourself happy and others too….Enjoy that money and finally distribute that money in such a way that its respected even after you leave this world…Remember – never compare your net worth with others, Never copy others while investing or spending your money, Don’t think too much about Money because if you think too much you feel lack of it and invite stress… Never be under any peer pressure, show off or feel jealous about anyone else’s life style – Sit back, relax and be very clear what exactly you want to achieve in your life with the help of proper Goal based Financial Planning???
