To build our wealth through personal investment we have to find the money to invest. The only way we can do this is through proper budget planning. This will help us find discretionary money – money we will not need to cover our day-to-day living expenses. Many investment plans fall down because the money has to be used for unforseen emergencies or unplanned-for contingencies. If we want to grow our wealth, personal investment money has to be set aside specifically for that purpose.
Hate The Idea Of Budgeting?
So many people hate the idea of budgeting. The idea of living on a budget is not appealing. So many negative pictures come to mind: having to restrict ourselves; having to go without some pleasures; having to discipline ourselves. For some people it means facing reality, because they know they are living beyond their means and they do not like the idea of having to change. Yet, if they don’t, they will get deeper and deeper into debt and will never be free. Unfortunately, this is the story of a great many people.
Budget Planning Makes Us Free
Budget planning puts us in control. Because we control our money, we control our lifestyle. More than that, we control our future. There are so many things in our lives that virtually control us, often through no fault of our own, this is one area we can control and it is one of the most important. Even if money is not the most important thing in life, it is one of life’s essentials. Money worries are one of the most, if not the most common worries. We can reduce these worries, if not eliminate them, by taking control of our money.
Get What We Want
Budget planning is the first step to peace of mind and then to financial freedom. I mean being in a position where the smallest financial glitch does not become an emergency – things like your pay being delayed; the car breaking down; an unexpected dental or medical bill. For many people events like these mean they will simply go into more debt with their credit card or they make a panic call to friends or family or, if they have no one to call, just getting through the best way they can. This constant feeling of insecurity can be very wearing. Budget planning is a positive step towards freeing up money to build personal investment, which leads to personal financial freedom.