Lionel Shipman is the owner of Shipman Consulting, a financial empowerment firm specializing in helping people improve their financial outlooks. The goal of the firm is to educate, motivate, and empower people to maximize their financial lives and build a solid financial foundation. Lionel is also an energetic and engaging motivational speaker and presenter for educational conferences, school events, corporate events, church meetings and other events. Please visit the firm’s website for information at
Know Your Money
Wednesday – September 12, 2016
Budgeting Is Not Bad
By Lionel Shipman
I have often wondered why budgeting seems to invoke tension in consumers. It is such a great tool in helping people and companies operating proficiently with money. However, it is often looked at as a tedious task for many people, even though many corporations depend upon it. Every day, large companies throughout the world function utilizing a variety of budgets for departments such as payroll, purchasing and marketing. If companies and organizations can operate successfully and benefit from using budgets, then surely we consumers can do the same
What is a budget? A budget is a guide that tells you whether you are headed in the right direction, financially speaking. It is basically a summary of your income and expenses. It helps determine whether your finances will reflect a profit or a loss. It is also a tool used to help you allocate or distribute your income, as it helps you see and understand your current financial outlook or status (how much you make, how much you spend, how much you have, and what you owe). Along with setting goals, budgeting can help you improve your financial outlook.
Every day, consumers worry about making their financial ends meet. Many have accumulated credit card debt and other debts, and they have very little to save for retirement. For many people, when life happens and causes an unpleasant financial situation, they worry and become afraid and stagnant. It happens from time to time. And, it can happen to anyone. Instead of worrying, start taking charge of your finances. You can do something about it, and budgeting is a good place to start. Establishing and maintaining a budget can help you get back on your feet and improve your financial outlook.
Here are five reasons why budgeting works:
- A budget lets you control your money, instead of your money controlling you.
- A budget will tell you if you are living within your means.
- A budget can help you meet your savings goals.
- A budget frees up extra money so you can use it for truly important things.
- A budget helps you prepare for emergencies or unanticipated expenses.
Budgeting is not a one-time event in life. Budgeting is a life-time event. It should become a part of your life, for the rest of your life.
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Disclaimer: I have a Bachelor of Business Administration degree but I am not a financial planner. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.
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