Master Components of Financial Planning for Wealth Success

Budgeting: The Foundation of Financial Planning

Budgeting is the cornerstone of any financial plan. It involves tracking your income and expenses to ensure you live within your means. Creating a budget helps you identify areas where you can cut costs and allocate funds to savings or investments. According to a study by the National Foundation for Credit Counseling, 59% of adults in the U.S. do not maintain a budget, which often leads to financial mismanagement¹. By adopting a disciplined approach to budgeting, you can avoid debt traps and build a solid financial foundation.