Budgeting is a very important element of financial management. Budgets accomplish two things:
- Informs the client of how much income they earn and where the funds are spent
- Allows for changes in financial lifestyle to maximize on savings, retirement, college funds etc.
Very often a client is surprised to find out how much they spend and where they spend it. Seeing this information on paper allows us to explore ways of cutting back on unnecessary spending and monitoring all the goals that are set.
As business managers we do not spend our clients’ money and cannot force anyone to stop spending. What we can do is provide a concise map of the ramifications of that spending and to aid in modifying behavior that works against financial security.
Our budgets are as detailed as the client wants. We prepare budget versus actual reports monthly, quarterly or semi-annually as necessity permits. We meet with our clients to go over the figures and keep them on track.
In many, many cases, our clients find that with budgets they feel better about their financial outcome and find that working together for their common good has great rewards.