How do you think about spending and saving your money? Cash flow planning for tech employees is very important. Has the dreaded “B word” entered your mind – budget? Budgeting is not as exciting as chasing the latest and hottest investment or something you want to brag about with your friends, but it’s a basic tool that is incredibly helpful when it comes to living a solid financial life.
Questions about Budgeting
Let’s face it, budgeting is boring, with a capital B. During the month what do you typically do? Buy what you want and then get your credit card statement and you think, there’s no way I spent that much money?
Do you then pay the balance off? Or pay just the minimum amount?
Why is There so Much Month Left at the End of the Money
The amount of money required can fall short. This happens a lot, especially when you live in a high cost and high tax area. So what can you do about it?
Pay Yourself First
Perhaps you can look at it the other way around by paying yourself first. It starts with a budget. This can be done in a variety of ways, including a 401k plan, investments, or traditional savings. It all depends on where you want to channel your money in order to live your life.
Then use what money you have leftover for “wants” in life. A lot of times it’s hard to discern wants and needs.
Paying yourself first is a way to be prepared. From a sports point of view, you play offense, not defense when doing this. Think about it like scoring a touchdown, a goal, a run, whichever way your pleasure tends. Positive cash flow planning for tech employees is great!
The amount you save and then invest is a wonderful strategy that sets you up for a successful financial path in life, and this all starts with boring budgeting.
We can chat about budgeting, and I promise to make it interesting and exciting.