It's that time of year again...
Tax season! Personally, it is not my favorite task. I love spreadsheets and financials and numbers, but I do not like doing my taxes. Tax season is also that time of year where we all take a hard look at how we did last year.
- Did we hit the revenue goals that we were expecting?
- Did we achieve the cash flows that we were planning on?
- Are we going to make a contribution to our 401(k) this year or defer that decision another year?
- Did I make enough money to make a withdrawal or pay myself a little more?
Sometimes this means looking back and thinking things like, “Man, I wish I hadn’t spent money on this or that!” Or, “Next year I’m going to have a better plan and not miss my savings goals.” Maybe you’ll wish you had planned a buffer for the surprise that ate up the cash you earmarked for your retirement fund this year.
Looking back during tax season can help you achieve your financial goals. Having a budget and sticking to it can be a consistent reminder of what you had planned to spend on certain categories, so that in the heat of the moment you don’t make a short-term decision that impairs your long long-term business goals.
Building a budget only takes a few minutes on our platform. Your future self will thank you this time next year.