I have come across a few situations recently where we have had to help people who are in major life transitions – retrenchment and retirement – and it amazes me that most of the people we have been asked to help have no idea of their income needs (budget).
I was also chatting with a group of business people recently who have all been running businesses for over 15 years and yet a common theme seemed to be that they “had no money”.
I dont hold myself out as a role model and dont believe that I have “all the answers” but one thing I do know is that the “secret” to running a succesful business or to getting your finances in order is positive cashflow. And that always starts with a budget.
You cant plan if you dont know what’s coming in or going out. It may be boring and tedious and for some it may seem too simplistic, but the key to getting on top of your financial position is a budget. And more importantly, a budget where the expenses are less than the income!
We have always found it easier to use an excel sheet to list and track expenses and if anyone would like a copy of the sheet just drop me an email.
Drawing up a budget is not difficult but it can take many months to get it to balance.
