Building A Budget To Invest And Save


Building A Budget To Invest And Save

Zach Conway: Building a budget isn’t just about making sure you can pay your monthly bills. Budgets tell us a story about how we spend. And in understanding our spending behaviors, we can adjust accordingly. More important, budgets reveal opportunities for things like saving and investing. If you’re not able to save because of expenses, you should rethink your expenses.

Systematizing a monthly strategy to save ensures you can begin to put away a specific piece of your income to create an emergency fund for unexpected expenses. That doesn’t mean you should sacrifice your comfort to save, but including automatic savings in your budget will help ensure financial success in the future. Beyond saving, systematically investing part of your income allows you to take advantage of long-term growth.

With a long-term investment strategy, the compounding effect over decades can help you build a pool of assets that will help you pay for more costly expenses in your nonearning years.