Create Balance Between Today’s Needs With Tomorrow’s Dreams
Human beings have been characterized as creatures of habit. A review of our spending patterns goes a long way in determining our financial habits. Budgeting is an exercise in behavioral modification to help create a balance between our immediate needs and desires with a longer term perspective which incorporates our dreams for the future.
The creation of a monthly budget focuses not only on how much money is spent in a month, but spent on what products and services. The breakdown of expenditures into percentage terms can provide insight into our priorities and shed light on the distortion between our needs and desires. How much of our monthly budget is paid from income and what portion is financed with debt. What portion of our expenditures is earmarked for our financial security? How much is spent towards insurance, healthcare and savings. What is your level of debt in relation to you income and assets. The measure of debt used to finance consumption is a useful indication of the overall financial health of a household.
A budget will help you set your own course towards your True North. A budget will help you organize household finances through:
- Analyze Monthly Budget;
- Determine Budget Priorities;
- Reduce Consumer Debt;
- Set Financial Goals; and
- Save for Retirement.
