Budgeting for wealth, start with the end in mind.

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If you don’t know where you're going it doesn't matter what road you take. If you don’t know where you're going it doesn't matter what road you take. Morgan Caddy: Road from Broome WA to Fitzroy Crossing

How much money do you need and how much do you want?

Now is the time to start designing your business and profits to counterbalance your lifestyle. Your profit will determine this.

How do you know how much money you will need to sustain your lifestyle through to retirement and beyond?

To build wealth to sustain the lifestyle you are now living or wish to live in the future, you will need to start with the end in mind and then work back.

Live your life with purpose

By doing this, you will know exactly where you are heading, and you can start to live your life with purpose. Knowing how much money you need to sustain your life to the end, and to leave a legacy for the next generation will empower you to make a commitment to being profitable in your business.

Starting with the end in mind helps you evaluate your future needs, giving you the opportunity to design your business and profits to make that happen. Being mindful of how much money you need to live helps you to make better life choices and prevents you from wasting your time on unnecessary purchases and poor business decisions.

This leaves nothing to chance and will protect you from poverty and bad luck later. Having a goal and endeavouring to reach it helps to cover you financially.

The years slip by quickly

We all want to have a comfortable retirement. If you are young and have not thought about this, now is the time to start. The years slip by quickly, and once you reach your forties panic may set in. Having money ensures you have the freedom to live your life how you want, and the way to do that is by planning now.

By planning for the future, you will have peace of mind that you will be financially secure, and will have the means to leave a legacy for the next generation.

Having a purpose and a goal for your money will give you a sense of freedom, it makes you stop and think about the things you want. Once I started this process, I began to question the things I bought, did I really need them? I started to make better choices.

Having money and living with purpose allows you to 'play a bigger game' and sets you up as a role model to the next generation.

It releases the anxiety.

Let's face it, you go into business so you can have a great life and the freedom to do as you please. The reality is most people become slaves to their business and do not live the life they hoped they would.

Designing your business to reach the profit that will sustain your lifestyle is where it all begins.

More in this category: « Money Lessons to Prosper and Grow

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