What's the difference between budgeting and bookkeeping?
This question is the topic of LeAndra Foster's, our cash flow guru, most recent session. When chatting on the subject, she shared a story of a recent client. "I had a client who recently told me, no, I don't think I need help with budgeting anymore, I'm just gonna hire a bookkeeper. My question to her was, is your goal with budgeting to figure out a way to consciously spend, or is it to help you figure out how you've already spent? She said, No, I want to learn how to consciously spend. Well, a bookkeeper is only going to categorize what you've already spent. So you'll see how you spent but if you're looking at how you want to spend in the future, that's when you need to sit down and look at your cash flow plan." Having a plan, as we all know, is the best way to ensure you reach your desired outcome.
As LeAndra points out, if you just want to track what you've spent get a bookkeeper, but if you want to really take the reigns and spend consciously then create a budget.
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