Why the F…. updating your budget every month builds wealth
Your budget should be your most reliable financial intelligence, but many business owners set their budget then rarely update it during the year.
That means you’re making critical decisions that affect your future and your wealth on an outdated plan. You're making decisions based on fantasy, not facts.
As soon as you start the year, your budget is out of date; budgets never survive contact with reality!
Perhaps revenue isn’t what you thought, costs have changed, you’ve employed another person, but your plan is still the same.
This is a wealth sabotage – and you need live information to run your business.
Treat your budget like live financial intelligence, not a static annual plan
A live budget gives you the one thing you need: accurate, real-time visibility about where you're heading.
See if you're on track to hit your profit target💡💡
Make fast, confident decisions. "Can I afford this?" becomes a clear yes or no because you know your real numbers.
Spot opportunities to move surplus profit into your pension, savings or investments
Know your realistic year-end position (no year end surprises)
Catch problems months ahead when you’ve got time to fix them
This is how you build wealth without the hustle:
Knowing where you stand, so you can act strategically.
One thing you can do this week
Stop treating your budget like a one-off annual thing. It should be a live prediction of what's most likely to happen this year.
Open your current budget. Look at the numbers you set at the start of the year.
Ask yourself: "Is this still remotely accurate?"
Is the revenue forecast still realistic?
Have you had new costs or staffing changes?
Have you made some savings?
If the answer is no (and it probably is), block out time to update it. And make it part of your monthly finance routine.
You can only build wealth if you know whether your business model actually works.
You can only make strategic decisions when you’re looking at the truth.
And every month you measure against an outdated budget, you're not looking at the real picture
Oh, and if your accountant says you don’t need to update your budget that often, THEY ARE WRONG.
This is how you stop winging it with money. This is how you build wealth as a business owner.