We know budgets can be important to helping us achieve financial success. Read on to discover the additional benefits you should reap from budgeting.
Knowledge
Personal budgeting allows you to know exactly how much money you have—even down to the penny, if you so desire. Furthermore, a budget is a self-education tool that shows you how your funds are allocated; how they are working for you; what your plans are for them, and how far along you are toward reaching your goals. Knowledge is power, and knowing about your money is the first step to controlling it.
Control
A budget enables you to take charge of your finances. With a budget, you have the tools to decide exactly what will happen to your hard-earned money and when. You can be in control of your money instead of having your money limit what you do. This bears repeating: You can be in control of your money instead of letting it control you!
Organization
Even in its simplest form, a budget systematizes by dividing funds into categories of expenditures and savings. Beyond that, budgets can provide further organization by automatically providing records of all your monetary transactions. They can also provide the foundation for a simple filing system to organize bills, receipts and financial statements.
Communication
If you are married, have a family or share money with anyone, having a budget that both or all of you create together is key to resolving personal differences about money handling. The budget becomes a communication tool to discuss the priorities for where your money should be spent. It also allows all involved parties to “run” the system.
Opportunities
Knowing the exact state of your personal monetary affairs and being in control of them, allows you to take advantage of opportunities that you might otherwise miss. Have you ever wondered if you could afford something? With a budget, you should never have to wonder again—you should know.
Save Time
All your financial transactions should be organized for tax filing, creditor questions, or any query that may come up regarding how and when you spent money. Being armed with such information saves you time from digging through old records.
Extra Money$$$
This will be everyone’s favorite benefit: A budget will almost certainly produce extra money for you to have available. Hidden fees and lost interest paid to outsiders can be eliminated forever. Unnecessary expenditures, once identified, can be stripped out. Savings, even small ones, can be accumulated and made to work for you.
There are a lot of benefits! Knowing what you can achieve, I am sure you are ready to get started with your own budget. For more information regarding this topic or any other tax-related issue, please call Henssler Financial Tax & Accounting Division at 770-428-4025.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
