The budget: the ultimate financial management tool
A carpenter uses a series of house plans to build a house. Otherwise the bathroom could be completely overlooked.
Rocket scientists would never start building a new launch vehicle without detailed design specifications. Most of us, however, go around the world blindly, with no idea of finances and no plans.
Not very smart of us, is it?
A financial plan is called a budget and is important to achieve our desired financial goals.
Without a plan, we will drift aimlessly and settle on a distant financial reef.
If you have a spouse or other important person, they should manage this budget together. Sit back and find out what your common financial goals are ... short and long term.
Then plan your route to reach these destinations. Every journey begins with a step. The first step to achieving your goals is to create a realistic budget that you can live with.
A budget should never be a financial starvation system. It won't work in the long run. Consider appropriate groceries, clothing, accommodation, utilities, and insurance, and provide a reasonable amount for entertainment and occasional luxury items. Savings should always come first before they are spent.
Even a little saving will help you achieve your short and long-term financial goals. You can find many examples and budget forms online.. Simply use the search engine of your choice and enter "free offer forms".
You will achieve a lot of success. Print one out and work with your spouse or partner. You should both be satisfied with the end result and feel that you can stick to it.