Every year in May/June, the Australian Federal and State governments hand down their budgets for the next financial year. They are presented in books over hundreds of pages thick and include forecasts of expected revenue and details of how this revenue is proposed to be spent.
Well, if you need to present all of the billions of dollars that represents the country’s financial position, of course it will take up more space than a simple family budget. Unlike the Federal budget, a family budget can fit on just 7 pages, and this includes documenting all the reasons why you set out your budget this way. If you don’t believe me, I invite you to download my Financial Independence Kit, which includes an online Budget & Savings Planner. Click here to see for yourself.
The point of this is, both large organisations, big and small business MUST use budgeting tools in order to be allowed to trade and to make sure they always have enough money to trade. In the case of governments they need budgets to pay the statutory bills, the public servants, the subsidy recipients, and those relying on allowances and pensions. In the case of businesses, you need to have budgets to make sure you can pay your staff wages and entitlements, and pay all your suppliers in time, but more importantly to stay profitable. The principle remains the same: budgets are created to plan spending and provide the reasons for allocating a certain amount of money to a particular cause, ie they are goal or policy driven.
Now, imagine how successful you could be by doing in your private life what successful businesses and institutions are doing? Use a budget to reach your goals, big and small. In my recent article “5 Simple Steps to Take Control of Your Money” I have described the first few steps you need to take to do that.
When you’re ready to take your financial planning to the next level, I’ve got more help for you coming. In my book “Straight Money Talk – A Straightforward Plan for Financial Independence”, which made the Top 10 Bestsellers in it’s category when it was launched a couple of years ago, I have shared with you my 10-Point Plan to cover all your bases.
Armed with this knowledge, tools and determination, you can do anything you like. But you need a budget! At Straight Money Talk we are passionate about helping you to achieve what you like and get the most out of your money. That’s why we also offer a FREE Financial Health Check to help you sort through any questions you may have when you start out on your journey to create your financial plan for the future. Click here to contact us and arrange your session NOW.
In closing, I’d like to share some of my favourite quotes on money:
“I am opposed to millionaires, but it would be dangerous to offer me the position.” – Mark Twain
“A rich man is nothing but a poor man with money.” – W.C. Fields
“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” – Oscar Wilde
Copyright © 2015 Robert Bauman. Feel free to use this article in your hard copy or eNewsletter, provided you display the Copyright notice and source reference in its current form.
Disclaimer: This information (including taxation) is general in nature and is for Australian residents only. It does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement. To find out more about services provided by Straight Money Talk Pty Ltd please visit my website.