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3 lessons that let you build a financial budget

To set up a financial budget it is important that you consider what you earn and what you spend, as well as define the objectives you want to meet and within what period.

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This article was translated from our Spanish edition. Opinions expressed by Entrepreneur contributors are their own.

Meeting your personal or professional goals, such as buying a car or property, paying for a diploma, making an investment or going on a trip, is a challenge that can be achieved through financial discipline . Therefore, a financial budget is one of the best solutions to help you meet these goals.

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According to data from the financial coach Coru , 75.8% of Mexicans are confident in achieving their goals. In this sense, only 13.2% of the people consulted are not entirely sure of achieving their goals.

However, according to figures from the National Survey of Financial Inclusion (ENIF) 2018 , carried out by the National Institute of Statistics and Geography (INEGI), only 35% of Mexicans keep a record or control their expenses

“Planning a budget allows you to have control over your expenses, that you can detect leaks and, after analyzing your finances, you can make better decisions with your money. It is important to keep in mind that the budget is flexible; that is, you can adjust it as your conditions change or you need it ”, says Fernando González, CEO of Coru.

To set up a financial budget it is important that you consider your income and expenses, as well as define the objectives you want to meet and within what period. Something that can help you is that the goals you set are measurable and specific, although keep in mind that you can always modify as you go.

The goals you set for yourself are measurable and specific / Image: Depositphotos.com

The analysis of your financial situation allows you to evaluate and be clear about what you spend your money on and, based on this, to be able to modify your consumption habits. According to Coru, these are three lessons you can learn from budgeting:

Don't spend more than you earn. If you do not keep track of what you earn, what you spend, your payment dates and the amount you owe, you will hardly have control of your finances. If you do not have healthy and clear finances, it is difficult for you to meet some of your financial goals or to save. Making a personal financial budget allows you to know your situation in depth and to act accordingly.

Controlling your finances does not mean stopping enjoying yourself. Budgeting financially to meet a goal doesn't mean you have to stop spending on recreational, social, entertainment, or goods and services that are considered nonessential. It is important that you are clear about your fixed expenses and your variable expenses and based on this decide when and how you can indulge yourself. Your budget must be flexible so that it can be adjusted to your needs on the fly.

If things don't turn out, don't be discouraged. Keep in mind that once you make your financial budget and set the objectives you want to meet, it is normal that there are unforeseen events that can delay your goals. Do not worry! The important thing is that you don't give up and quit; you can always adjust the plan.

Controlling your finances is a habit that, like any other, you acquire step by step. In the end, the benefits are greater than the sacrifices: you will be able to have a financial health that allows you to make better decisions and achieve your goals in less time.