The thought of creating a budget can seem overwhelming and time consuming – but it’s definitely worth your time. Here are 5 benefits of budgeting for doctors.
1) Cash is King
There is a rule in business that states profit doesn’t keep a business running, cash does. This applies for individuals too. Your annual tax return might show a healthy taxable income (income less allowable deductions), but if you’re spending all of your cash on private expenses, you won’t have access to any extra money to help you achieve your goals.
2) Spend Less Than You Earn
Often when payday comes around, we tend to spend a large amount within the first few days – feeling penniless leading up to our next pay. Sound familiar? When times get tough, the overwhelming contributing factor is usually excessive spending rather than insufficient income. Here’s where a budget can come in handy. Identifying a potential cash deficit can ensure this wont ever happen to you. Having a budget means you can allocate a certain amount of money to saving, investing and paying down debt – all of which are vital to your long term wealth creation.
3) Knowledge is Power
Knowing where your money is being spent, gives you the power to control your spending. Why not try recording the transactions from your bank account or credit card statement for a month? It will only take a few minutes and you will see where your money is going and be able to decide where any changes should be made.
4) It’s Easy
A simple spreadsheet showing your monthly income and expense items can be put together in a matter of minutes. The information which it will reveal to you can be accessed immediately, so you can act fast to remedy any potential problem areas.
5) We’re Here to Help
If you don’t know where to start your budgeting process, speak to a DPM consultant about the best way to go about it. We can ensure you have covered all bases and that you extract the right information from your inputs.
Contact email@example.com or call 1800 DPM DPM to discuss budgeting and any other financial matters you might have with one of DPM’s expert consultants.
* The information contained in this site is general and is not intended to serve as advice. DPM Financial Services Group recommends you obtain advice concerning specific matters before making a decision.