Having a budget isn’t a full proof way of assuring you’ll be able to save money, pay bills on time or have a general, strong understanding of your finances.
The misconception is that just because you put pen to paper and thus have accounted for your car payment, house or apartment or your utilities that you’re on the right track to becoming more successful when it comes to money.
Truthfully, that’s just a small part of the budgeting process as other elements play into all of things you want to do with your money beyond just knowing that it exists and where you hope it is being allotted.
Experts argue and with good reason that your budget has to be adaptable; it has to be able to change with how your lifestyle, job or other elements can shift in one direction or another.
Would you believe that someone can get take a pay cut at work and leave their budget absolutely untouched? You’d think that those with any sort of financial acumen would be trying to look for easy places to start cutting expenses as well, such as cable television, cell phone perks or spending money on clothing less frequently then previously.
The status quo when it comes to your budget, simply doesn’t work.
In addition to any pay changes, you also have to consider your retirement as it pertains to your income and how you save money.
If you’re thinking about retirement or have decided to invest a portion for the first time, you have to consider that as you get yearly raises, bonuses or cost of living expense increases, you might want to alter your contribution to your retirement account and increase it with each year, so you can build your wealth or take into consideration how the market might fluctuate. If your company has a match program, you’ll want to take that into your thought as well.
No one is going to argue that a budget is the way to start saving and to beat debt into the ground, while keeping track of everything and anything that is money related. But budgeting isn’t a one and done proposal. It’s about a constant changing effort to manage your money, with a key on the word “manage.”
If you are a manager at work, manage a team or are in charge in some form or fashion in any realm of your life, why shouldn’t money be the same? You don’t all of a sudden start managing and then stop looking to get better, and money should carry with it that same mentality.