You would be hard pressed to find a more unsexy word than “budget.” Just say it out loud. Yet, a budget is the most powerful tool you can use to become financially successful. In fact, keeping tabs on one’s expenses is a primary habit of wealthy families.
Consider that a wealth study determined that two-thirds of American millionaires could tell you exactly how much their family spends each year on food, clothing and shelter. Meanwhile, a 2013 Gallup Poll found that an eye-popping two-thirds of all Americans don’t have a budget.
What group do you fall under?
Many people simply don’t know how to build a budget, or they lack the motivation to build one because they feel it is too difficult to manage and won’t provide any tangible benefits.
In fact, a budget is extremely easy to create; especially, with so many budgeting apps freely available to download. It can provide many benefits. A budget acts as an x-ray of your financial health. You can see your entire financial picture and diagnose any harmful spending habits that need your care.
In this video, financial adviser and CERTIFIED FINANCIAL PLANNER™ Jeffrey Lido takes you through the “FAQs” on budgeting.