Personal budget statistics from Gallup show us that only 1 in 3 of us have some sort of household budget. Another study shows 60% of business owners do not have a budget for their business.
So, let’s talk about it! Do budgets really work?
Create a budget, increase your wealth
Personally, I don’t see how you can build financial wealth or increase your profits without a budget. I often see business owners creating budgets and then “failing” sometime after, leaving them questioning why.
Here’s my top reasons why I think budgets fail:
- “Money Diet” Mindset – People immediately feel like they can’t spend any money or like it’s going to be a full lifestyle change. Instead, the focus should be on the potential outcome from following the budget. How much more money can we put into savings? What will we be able to invest in that we couldn’t before? Can we retire early now?
- Priorities – Decide what is important in your business and personal finances to help you reach your goals. If you view it as a financial constraint, rather than a window of opportunity, you’re setting yourself up for failure.
- Return On Investment – Budgets fail when you aren’t looking at what the budget is doing for you. If you spend money in your business but the money spent isn’t bringing in a good ROI – why are you spending that money?
- Lack of Guidance – A poorly created budget will not lead to success! It is best to invest in help to create a well-developed budget.
Want to become a master of your finances?
Without the knowledge and understanding of budgeting, you run the risk of failing because it wasn’t set up right to begin with!
If you’re looking to master budgeting and gain financial literacy, sign up for my program, Chart Your Course to Financial Success.
In just 6 weeks, you’ll walk away with a clear mindset regarding money, a plan for your money, full DIY instructions for bookkeeping and financial management, and more!
