Hellow guys, Welcome to my website, and you are watching Difference Between Budgeting and Financial Planning (Budgeting vs Financial Planning). and this vIdeo is uploaded by Darlington Academy at 2021-08-28T08:00:03-07:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | Difference Between Budgeting and Financial Planning (Budgeting vs Financial Planning) |
| Video Uploader | Video From Darlington Academy |
| Upload Date | This Video Uploaded At 28-08-2021 15:00:03 |
| Video Discription | Difference Between Budgeting and Financial Planning (Budgeting vs Financial Planning) Kindly Use My Personal Capital Referral Link For Your Budgeting Journey: https://bit.ly/PersonalCapitalBudgetingApp In this video, I explained the difference between budgeting and financial planning specifically for beginners. USEFUL LINKS Difference between needs and wants: https://youtu.be/u_dtKcFsj00 How To Create a budget plan: https://youtu.be/8inNtTY8iTs HERE IS HOW THEY DIFFER: 1. Budgeting limits the overspending trap, while 2. Financial planning is the roadmap to your financial future. 1. The whole aim of budgeting is to help people live within their means. And understanding this part and actively working on your budget to ensure you don’t overspend brings you to the second part, which is cutting down on unnecessary expenses. If you are unsure about this expenses part, check out the video in the USEFUL LINKS SECTION above on the difference between needs and wants which explains how to differentiate between your needs and wants to create a strong budget plan that helps put more money in your pocket. To understand how to create a budget, you will have to divide your income across your expenses and your savings column, and this is usually done in your budget planner for more clarity. For most people, their income is tied to a payment schedule; meaning they are paid weekly, biweekly or monthly. That should be considered when creating your budget in your budget plan, as this helps you allocate vital expenses, which can also be considered, as your vital needs first; things like rent and groceries, and your vital savings like an emergency fund. When all these vital expenses and savings needs are taken care of in your budget planner, then you can go ahead in the second phase of your budget plan, which is allocating money to items that are considered as non-essential needs but important like your phone bills, gas for your car, bus transit, etc. You can check out the USEFUL LINKS SECTION above on how to create a budget plan if you don’t know where to start. Remember that budgeting is an active process, and to be successful at it, you need to track your spending and be prepared to make adjustments as a bit of flexibility in your budget can make it easier to follow. In summary, budgeting helps you spend within your means. Think of it as a means to take care of your short-term goals or your present situation, but to reach and achieve your long-term goals, you need financial planning. 2. Financial planning provides a roadmap for your financial future. Unlike budgeting, financial planning is not limited to the present; your financial plan considers where you are now, as well as where you want to be in the future. Its main purpose is to help you afford and achieve your long-term goals like starting a business, a family, owning a home, saving for college, or retirement. While financial plans like the above-mentioned can come into your budget planner, they only reflect as words and numbers in your savings column. Check out the video in the USEFUL LINKS section above on how to create a budget plan geared towards a financial savings plan and explain how to use it for investment purposes. Note that life circumstances can affect your financial plan. For example, a loss of job, sickness or injury, investment success, extra income, new additions in a family-like baby, etc. Just like budgeting, financial planning requires regular review and adjustments. In addition, financial planning requires constant learning in the areas you are interested in for your long-term goals. While you can’t control most unexpected life circumstances, the reason why an emergency fund is highly recommended, you can surely plan for other things within your control. In conclusion, budgeting and financial planning work great together, because, a budget can help you manage your money and avoid debt, while a financial plan can help you achieve your long-term financial goals. I provide information on business, personal finance, life in Canada, and moving to Canada utilizing various sources. Contact me via Instagram: https://www.instagram.com/darlingtonobasi.c/ Twitter: https://twitter.com/dcobasi Linkedin:https://www.linkedin.com/in/darlington-c-obasi-49b5236b/ |
| Category | Howto & Style |
| Tags | difference between budgeting and financial planning | budgeting vs financial planning | financial planning | personal finance | budgeting and financial planning | what is budgeting | what is financial planning | what is financial planning and its importance | what is budgeting and its importance | which is better budgeting or financial planning | which is better budgeting and financial planning | how to budget | budgeting | is budgeting different from financial planning | how to budget money |
