Matt Bell on Why Budget is the Most Powerful Finance Tool

The plans of the diligent lead to profit as surely as haste leads to poverty. – Proverbs 21:5

Suppose you had access to a tool that would give you a strong sense of control over your finances and help keep your financial stress low. A tool that would serve as a financial roadmap, showing you how to live within your means, be generous, and save or invest for future goals. A tool that would help create a sense of financial teamwork and trust in your marriage. Wouldn’t you use it?

There is such a tool: the lowly, much maligned, much misunderstood budget — or, as I prefer to call it, a Cash Flow Plan.

What wealthy people know

When some people think of a budget, they think only certain types need one, such as people with low incomes or lots of debt. But one of the most interesting findings from the classic book The Millionaire Next Door is that over half of all millionaire households use a budget to guide their finances.

As authors Thomas Stanley and Wiliam Danko explain, “Planning and controlling consumption are key factors underlying wealth accumulation…. Operating a household without a budget is akin to operating a business without a plan, without goals, and without direction.”

Succeeding in planning is planning to succeed

Haven’t ever used a Cash Flow Plan? You could start today.

I walk through the four steps to setting up and using a Cash Flow Plan in the https://soundmindinvesting.com/resources#downloads” > Budget Quick Start Guide that’s available for free, so I’m not going to repeat them here. You’ll find our Recommended Cash Flow Guidelines at the same link as well, which will help you develop your plan.

Click here to read more.

SOURCE: Christian Post, Matt Bell