Why budget? Why can’t you just use your salary as income, and list your expenses? Job done?
If you want to be in control of your money matters, actual spending isn’t the best indicator of what you can achieve. Building financial security requires creating a budget that aligns with your short-term and long-term financial goals. We’ve hand-picked some great reasons why budgeting can make saving for a goal much easier.
By managing your income and expenses proactively, you take the helm of your money boat and stop being tossed about by the slightest money wave.
Let’s take the National Budget as an example
Say the Minister were just to take all expenses every year, add 5% and leave it at that.
- How will he make sure the money spent is the most productive way to spend it?
- How will he decide from which department to take away money and which state functions are more deserving?
He can increase taxes if his expenses are more than the country’s income, but at some point, taxpayers will resist.
The National Budget isn’t just numbers on a page – it’s a financial plan shaping the country’s economic future. It outlines how the government will earn and spend over the year, ensuring money is allocated wisely to support economic growth, public services, and financial stability.
It's the same with your personal budget!
- Are you spending money in a way that meets your needs best?
- Where can you cut back and where do you need to spend more?
Why creating a budget is important
A budget is a financial plan that guides you on your personal journey to success. Think of it as a tool to help you charter the wild money waters that sometimes come our way:
Just as the government carefully allocates money in the National Budget to drive economic growth and stability, you need a personal budget to ensure your money is working for you, not against you.
Whether you’re saving for retirement, a child’s education, or want to reduce debt, a budget empowers you to make informed, intentional choices that help you achieve your financial goals.
Get advice
Need help creating a budget that helps you save towards your long-term goals? Chat to a financial adviser on how the range of savings plans from Momentum Savings can help you on your journey to success.
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