Thursday, November 16, 2023

The Power of Budgeting

If your employees really understood the power of budgeting, they would always utilize a budget in their lives. Why? Because creating and using a budget helps employees reach their financial goals in manageable ways. Budgets are a tool that employees can create and constantly tweak to meet their financial needs and desires.


When employees determine where they want to spend their precious paychecks before they actually spend them, they effectively take control of their money. When employees assign what amounts of their money they want portioned to housing, transportation, food, entertainment, savings, etc., they pre-determine how they will use their money to best meet their needs and desires. For example, if an employee knows he/she wants to accomplish a specific financial goal, they can establish a “goal” section of their budget. That employee can then budget to save $X amount each month towards that goal. He/she can anticipate meeting the goal and get excited about the goal, as he/she saves toward their goal. Whatever said employee is “sacrificing” to save for will be easier if he/she has established an achievable goal. 


Budgets are meant to be fluid and adapt with employees' ever-changing goals. They are tools allowing employees to plan for and enact their individual financial desires. Their power is two-fold: first, in the utilizing of employees’ financial goals for establishing their budget and second, in using their budget to guide their daily financial decisions (and transactions). Employees budgeting money before they spend it puts them in control of their finances. Budgeting allows employees to determine where they want their money to go before it goes anywhere. If your employees are looking to be more disciplined and intentional with their money, a budget may be the key. Employees who feel in control of their money are more engaged and productive at work, which is a win for you and for them. 


Our tools and coaches can help your employees with a personalized budget. We are here to serve you in helping your employees decrease financial stress and experience greater financial wellness.


We're here to help,


Financially Fit Employees


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