There are three critical pieces of the puzzle when it comes to life goals, budgeting and a spending plan. The budget needs to be aligned with your life goals. A spending plan is needed that’s aligned with the budget. Finally, you need to know how much money is really available for spending at any given time. If any piece is missing, your budget and life goals are at risk.
Having a budget and a spending plan is a good idea in general. However, there is another benefit of having a budget and spending plan. You’ll have the information you need to get back on track if you are the victim of identity theft, a cyber attack, stolen credit card information, an internet service interruption or a job loss.