Financial Planning - Is Your Budgeting Allowing You to Thrive?

"Failure to recognize possibilities is the most dangerous and common mistake one can make." - Astronaut, Mae Jamison

You must admit that the title of this article is a little strange, because when you think of a budget you usually feel everything else but thriving. You see a budget as a tool that is restricting allowing very little room for growth or progress - When it is actually a tool that allows you to thrive!

Your budget provides you with an updated snap shot of your current financial position and by reviewing it on a regular basis you are able to make the necessary adjustment to your financial planning on your road to creating wealth. Allowing you to thrive! And it does this in three ways.

Firstly, it allows you to understand your spending. Each month as you review your spending you will get a clear picture of how your money is being used. And by asking the question “is this really the best use of my hard earned money?” You are able to take the necessary steps to adjust your spending habit so that you focus your resources as you choose. And by controlling your spending you will begin saving and making steady progress toward your goal of financial security. “Taking Control of Your Money” workbook is a useful resource to help you with your review.

Secondly, by reviewing your budget on a regular basis you will be able to determine whether your income is at the level it should be to support your current lifestyle. This is usually missed by most person and may be the missing element in your financial planning.

While you may see your budget as a belt tightening exercise, it could really be a clear indication that you may need to increase your income. And if you need to increase your income no amount of belt tightening will help. You just got to find ways to increase your income. And developing multiple income streams is always best because it moves you away from depending on only one source of income.

And your quest for another income stream will lead you to another benefit of budgeting that you may have overlooked, your personal development. You would be surprise at how much money you are leaving unrealized every day because you don't have a certain skill - A skill that you can easily learn. And you will not realize your full income potential until you focus on developing your moneymaking machine -You!

And with a little more income your budgeting will be a lot easier because you can now increase not only your savings but your spending as well!

Finally, your budgeting allows you to optimize your savings and spending by simply getting the best value for every dollar spent. So are you getting the greatest bang for your hard earned buck?

Always remember that, “every dollar you spend has the potential of jeopardizing rather than enhancing your future.”

Begin looking at every purchase through the lens of “Am I getting the most value for this dollar?” And if you are not then adjust your spending habit.

So if you really want to get ahead and create wealth for you and your family, you need to ensure that you are using the most important tool of your financial planning – your budgeting, to thrive!

“Time is our most precious asset, we should invest it wisely.” - Michael Levy

Copyright © 2009 - Glenn S. Ferguson