If I had to choose a single task that facilitated increases in my financial wealth over the years it would have to be the fact that I created a monthly budget and stuck to it. All of the other things that I’ve done to build wealth, including saving, investing, increasing my income and keeping my lifestyle in check, have surely contributed to my increase in financial wealth. But it’s the budget that’s held everything together.
Before I had a budget written out (typed out actually in a spreadsheet) money came and went willy nilly. Some money went here. Other money went there and rarely did I know why. Some months I saved, invested and paid down debt. Other months I didn’t. At that time any progress that I made in terms of wealth building was slow as molasses. A budget is easy to create. The power of the budget is not so much in the list of budget items themselves but in the fact that a budget causes you to make deliberate decisions regarding how money is spent.
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