The 'B' Word

So the UK National budget was recently announced by the chancellor, and changes have been made for the financial year ahead that affect all of us- What does this mean for you? Read more about it at the end.

As the New financial year begins this April, maybe its time for you to review your own financial position in your business and personal life.

 

*Are you where you want to be?

*What are your financial goals for this coming year?

*Do you have an exact figure you are working towards?

*Are you on track?

*What can you do to improve your current situation?

My recommendation is for you to do the dreaded ‘B-word’…Yes…BUDGET. Dave Ramsey puts it this way ‘A budget is telling your money where to go, instead of wondering where it went’.

Before each month begins, sit down and write your own personal budget. It’s no use doing a budget in your head because if it’s not on paper, it doesn’t exist! There is something to be said about the discipline of putting pen to paper, that solidifies your intent and helps you better execute the plan. It may not be the most exciting of tasks, however it is very rewarding and can mean the difference between financial independence (freedom) and struggling to keep your head above the waters (debt slave).

For the self employed and entrepreneurs, your income may be unpredictable, however the expenditures are usually constant or predictable so you are not exempted. Study and record your spending habits so that you plug any money draining holes. By looking at the trends in your budget, you will know your tendencies and hence you are in a better position to make adjustments. Above all, stay in control of your money so that it doesn’t control you.

3 things to remember when doing your personal budget:

1- Prioritize: Separate your needs from your wants. You can do this by making categories of: a) Urgent, b) Important and c) Wish-list

2- Make sure your 4 basic pillars are solid: Food, Shelter & Clothing, Utilities, Transportation.

3-Budget for unexpected items: Car problems, Doctors visit, Kid’s sports equipment, the list is endless.

You can also make use of budgeting software or applications (apps) to help you stay on track.

On spending money, the wealthy Warren Buffet says ‘If you buy things you do not need, soon you will have to sell the things you need. On saving he says, ‘Do not save what is left after spending, but spend what is left after saving’. So be proactive and do what wealthy people do.

As I write this post, I am in Atlanta USA for a ‘Speakers Boot-camp’, and believe it or not, I have a written budget for every dollar to be spent including excursions, tips and yes ‘unexpected items’. This ensures that I do not ‘go in the red’ with my personal finances, keeping me in control and giving me peace when I return from my trip. So start the habit you won’t regret- Make it a Happy New (Financial) Year.

Keep the power and Budget!

Read a summary of the key points for the UK National Budget here

Leave a comment or reply, I would love to hear from you

To your success

Epi

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