Just like a physical helps you assess the state of your health by identifying potential risks, measuring your progress and pinpointing next steps, budgeting can offer the same insight into your financial health. When part of a comprehensive financial plan, budgeting offers the ability to connect your current financial reality with your financial dreams.
By reviewing your budget over a period of time, you can gain an awareness that enables you to make informed decisions aligned with your long-term goals. While budgeting can provide a great guide, unfortunately for many, it’s just too easy to not pay attention. It’s similar to putting off that doctor’s visit, believing your health is fine. You are really missing an opportunity today if you don’t budget for the future.
Budgeting is an essential part of any smart financial plan. It puts you in control of your financial life by uncovering spending and earning patterns. It can be an eye-opening experience to clearly identify where your discretionary money goes throughout the year. Often people don’t realize the amount of money spent on items that are not a priority. Knowing this can empower you to make more intentional choices that optimize spending, reduce waste, and ensure that you’re on track for your future.
The budgeting process gives you a clear picture of your progress toward your financial and life goals. Does your spending reflect your values and priorities? How much are you allowing to fall through the cracks, and what impact will this have the on the next stages of life? These are important questions that can help you refocus your financial spending habits. It’s like changing your eating habits by making healthier food choices that positively impact your long-term health. Your financial future is dependent on the choices you’re making today.
One of the hardest things can be getting started. It’s important to begin with a financial plan that clearly outlines your life’s goals. This provides meaning for your budget and enables you to see it as a powerful tool for attaining results. Also, with today’s technology, tracking your budget has become much easier with software and apps that are readily available with reporting that enables you to quickly review your progress.
While the budgeting process may sound limiting, it can actually be extremely rewarding. As you begin the process, you gain the ability to make informed decisions in support of your future. This provides relief from stress and worry about your lifestyle in retirement, future healthcare costs, educational funds and any other concerns. The decision making process is easier since you already understand the consequences, and you can feel good about making choices with a purpose in mind.
Take care of your financial health now so you can live well into the future.
For informational purposes only. Not intended as investment advice or a recommendation of any particular security or strategy. Past performance is not indicative of future results. Information prepared from third-party sources is believed to be reliable though its accuracy is not guaranteed. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. For more information about Wealth Dimensions, including our Form ADV Part 2A Brochure, please visit https://adviserinfo.sec.gov or contact us at 513-554-6000. Please be advised that this material is not intended as legal or tax advice. Accordingly, any tax information provided in this material is not intended and cannot be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.