The Human Side Of Money presented by Client Care Lifestyle Financial Planning
Budget! A word feared in most households.
One of the biggest causes of arguments in households is money, we battle to speak about it, so we push it to the side to be discussed another day. Of all money subjects, a budget, is the most important yet neglected tool we should all use.
It is easy to see a budget as something negative, restrictive, controlling and even untrusting but if we view it differently it can be the base on which we build the current and future lives we want. When we want to build a business, a house, buy a car or go on holiday, we start with a budget which reveals certain options or possibilities to us.
In a similar way we should have a personal or household budget which covers fixed and lifestyle expenses including short- and long-term savings. This budget must not be more than the family income, or it will not work or give a sustainable outcome. Having a budget which we stick to will, instead of making us fearful, give us a feeling of control and allow us to feel positive about the future.
If your financial planner has not asked you to do a budget, let alone update it annually then you should question how they are able to be giving you the advice you need currently, let alone plan for your future retirement. At Client Care we assist our clients in creating their personal budget in their current positions as well as what it will look like in retirement. We use cashflow modelling to show what their future outcomes are and then help them understand the trade-offs they can make either now or into the future to make their personal plan work.
If you do not use budgeting, you simply cannot be in control of your financial life. Don’t know where to start? Give us a shout, it starts with the first step.
Dirk Groeneveld, Certified Financial Planner
t. 083 261 9287