“I notice that you always stress the importance of budgeting in your columns, but I can never seem to get around to preparing my household budget. It seems like too much effort to work out all those figures. I really need to get my finances under control, but I’m wondering if there is an easier way to do so without going through the process of doing a budget?”

There’s a very simple and straightforward answer to your question: “No.” No matter what your financial concern is; whether it is getting out of debt, investing your money more efficiently, buying a home, or starting your own business, the very first step to getting to your goal is preparing your spending and earning plan – otherwise known as your budget.

Would a contractor start to build on a piece of land without first obtaining a surveyor’s report to understand what was needed to proceed? Would a doctor operate on a patient before she ran the necessary tests to see what the problem was?

In the same way, you have to be very clear about your current financial picture before you can make the desired improvements to your finances. Continue reading The Basics of a Budget →