What Is an Outcome-Based Budgeting System?
take on the challenge of tracking expenses and creating a budget, they
typically have an outcome in mind. Eliminating debt, paying off an existing
mortgage or saving for a vacation within a specific timeframe are popular
examples of outcomes that people can use budgeting to achieve.
As you may
expect, outcome-based budgeting systems are focused on a particular outcome.
These systems differ from traditional input-based budgeting systems, which
focus on taking incomes and expenses and maximizing cash flow. An outcome-based
budgeting system will work to align and prioritize incomes and expenses in a
manner that will achieve a specific goal. As a result, outcome-based systems
tend to be more rigid and eliminate ad hoc spending in order to prioritize the
end result. The more extreme the end result, the more rigid the budget will be
in order to accomplish it within the timeframe.
outcome-based budgeting systems will simplify the process of creating a budget.
It will allow users to choose a financial goal and the system will help to
create a customized plan to align incomes, prioritize spending and manage
expenses in order to achieve that goal.
Finding the Right Budget System for Your Unique Needs
successful with an outcome-based budgeting system demands spending discipline
and it may be too rigid for many people. Some people are merely interested in
creating a simple budget that makes it possible to better manage their money
and understand cash flow.
budgeting software will be flexible enough to accommodate users who are
interested in creating an outcome-based budget as well as those who prefer
traditional budgeting styles. The ability to tailor the budget to your unique
needs allows more users to successfully use the product to meet their unique
Take the time
to find a budgeting software system that includes all of the functionality you
require now as well as the functionality you may require in the future as your
budgeting needs evolve. Don’t assume that extensive functionality means that the
product will be expensive and inherently difficult to use; the best and most
comprehensive budgeting systems are user-friendly and completely free to use.
This helps to eliminate the learning curve that many budgeting systems present
while offering risk-free use to ensure that the product adequately meets your
Accessing Personalized Financial Help When You Need It
Whether you are
utilizing a purely outcome-based budget or if you are simply trying to take
control of your finances, speaking to a financial professional can help you
better understand you unique financial situation.
A Certified Money
Coach can be instrumental in taking your budgeting tools to the next level and
transforming your relationship with your money. Certified Money Coaches can
personalize a cash flow plan, hold the client accountable by scheduling plan
reviews and dynamically change these plans when life events happen. You can
count on a money coach for unbiased financial advice and support whenever it is
needed; they will never try to sell you financial products.
The best budgeting systems will make it
easy to connect with a certified money coach if or when you need additional
help achieving your financial goals. Take advantage of the best free, online
outcome-based budgeting systems available today and make your financial dreams