If I have a budget, why do I need a financial plan? This is a common question.

Essentially a budget is a guideline that you’ve set with respect to spending. A budget is a tool and monitoring what you spend in relation to your budget is valuable information.

Individual items within the budget may contribute to achieving a goal within your financial plan such as a travel fund, retirement savings or debt repayment. Many of us will reach our goals if they are incorporated into our monthly budgets whereas it can be almost impossible to attain them without a plan. Financial plans don’t require a lot of attention because careful thought up front goes a long way. If you decide on your priorities, calculate what they will cost and include what you can afford in your budget, you will be amazed how quickly you will see progress.