Everyone who has money should have a budget simple.
Whether it’s an individual, a company or even a country we all need to ensure that we have enough money to cover costs. We may think we have a budget but how effective is it really.
If companies such as Samsung or Coca Cola didn’t budget and stick to it, then they wouldn’t be as profitable today as they are. Samsung’s 2014 advertising budget was bigger than the GDP of Iceland and Coca Cola’s advertising budget in 2013 was $3.3 billion. So no matter what scale you are working on, or what class of society you are in, everyone needs to ensure they have enough funds to cover costs.
Even the rich and famous will have a budget. They need to fund their affluent lifestyle budgeting for different expenses than what you and I would probably budget for.
Interestingly one key difference is, they make sure their assets are insured to cover for unforeseen circumstances. For example Kylie Minogue has her bum insured for $5 million, Mariah Carey has her legs insured for $1 billion and David Beckham has his legs insured for $70 million. Imagine if anything happened to David Beckham’s legs, he would be out of an income and no longer able to fund for his family.
This stresses the importance of insuring our belongings and ourselves just in case something happens then we are covered. We don’t have to find excess money to cover these costs. It’s when these unexpected costs arise that can throw our budget off track if we aren’t prepared for it. This is why we encourage setting up an Emergency Fund for circumstances that are just beyond our control.
So no matter who you are or what your income is we all need to save and budget. Bill Gates didn't get rich overnight and now have a net worth a $79.2 billion. He had to budget for things going wrong at Microsoft, manage his time and money effectively to get to where he is today. Whilst this is on a much larger scale than the average Australian, we all need to make sure that we have enough money to cover costs.
Bill Gates once said “If you show people the problems and you show them the solutions they will be moved to act” we can help you to help yourself.