A personal budget is defined as a finance plan that allocates future personal income towards expenses, savings and debt repayments. It is an action plan and forward-facing for twelve months. The global pandemic has highlighted the importance of taking care of our personal finances as well as business.
While the idea of combing through your finances can be confronting, not having a clear understanding of where money is being spent is one of the easiest financial mistakes. Financial clarity provides the blueprint for greater financial capacity, and in the current climate, this is imperative. Having a robust understanding of where finances are, allows for greater certainty and predictability over a personal financial forecast.
Personal budgeting is key in clearing up where money may be being spent unnecessarily. More substantial financial wastage such as frivolous or impulsive spending may be an easy one to identify, but the smaller more subtle purchases also add up and can contribute to a higher expense load. Money leaks from previous subscriptions that you may have forgotten to cancel (direct debits from gyms or apps for example) are an easy way to unconsciously spend money. Without conducting financial analysis on your accounts these leaks may go unnoticed for months, costing you money.
The idea of personal budgeting can be met with fear and resistance, but confronting reality and understanding where and how you may be mindlessly spending money will mean you are able to establish a budget that helps achieve your financial goals. It is time to tackle your financials, establish a personal budget that will set you on the right path, reduce overwhelm, prepare for emergencies and begin to implement positive financial changes.
We recently held a webinar “Your Personal Budget” that outlines the strategies we propose to help you through this, and you can access this below. Our team are experts with financial services and budgeting, and if we can assist you in business or advise you on your personal budget, we would love to hear from you.
Free download of webinar – click here.
For a complimentary one-on-one workshop with Kendons, please contact us.