Life Planning 101: How to create and work with a budget

It’s not enough to have a destination in mind, you need a map to help you get from Point A to Point B. Your money works the very same way — and here’s the secret for reaching your financial and life goals.

In today’s episode of Your Money Minute with Tracy Stewart, CPA, I want to talk about creating a budget to reach your life goals.

Okay okay, the word “budget” is enough to send even the toughest of humans into a panic — but I promise, I’ll make this as painless as possible. No one gets in their car without a map, without a navigation system, without a plan and expects to arrive in San Francisco. It just doesn’t happen!

A budget is a navigation system and roadmap for your money. It’s a documented strategy for how you’ll spend and save your money to reach your goals. Yes, you may think doing it in your head or crunching a few numbers is “doing a budget”, but it isn’t. You have to be on paper, on purpose — it’s not enough to just “think about it.”

You’ll find several articles and videos on my website which walk you through the process for creating and working with your budget. The best advice? Just start. Once you commit to the notion of being intentional with a budget, you’ll find strategies and systems for capturing the details of how you use your money.

Financial independence is unbelievably liberating. Being purposeful with every penny today — will set you up with peace of mind for financial stability tomorrow.

Remember: You can subscribe to my YouTube channel for even more practical advice on making the most of your money and life in the next episode of Your Money Minute.