Likewise every investment plan needs a goal. For the individual the core of all financial planning is having a budget and specific goals to achieve. If you do not budget and plan, chances are that your dreams will remain just that, dreams.
Most people are scared of sitting down to write a budget and stick to it.
But if you make budgeting a habit, you will know exactly where your money goes, and how to tie in your spending to your goals. You should not be wondering every month where all your money has gone. A budget tells you where it has gone and you can decide for yourself if some of your expenditure is necessary. The hard part of budgeting is sticking to it. Do not fool yourself by thinking that you can make up this month s excess spending by spending less next month.