Do You Need a Budget?Submitted by Mission Financial Planning on October 4th, 2014
A budget is a great way to create financial awareness, not just in the building of the budget, but in the tracking of actual expenditures against what you wanted to spend.
Building a budget is an exercise in examining priorities, choosing trade-offs and putting your money where your values and obligations are. This in itself is absolutely worth the time and thought required to go through the process.
However, what can be life changing is the tracking of actual expenditures against the budget. To observe yourself in action, and to either correct yourself or tweak the budget with new awareness. This is when we see our clients begin to mature financially.
As clients near retirement, accurate tracking becomes very important; we need to be able to project what clients will need from investments and other income sources in retirement. If we get the spending number wrong, compounded over time it can make a significant difference in the success of the plan. Mission Financial Planning's Financial Dashboard helps clients track their spending, in complete confidentiality or with our help, so they better understand their cash flow.