Whats the difference between a money management plan and a budget?
A budget is a part of a money management plan. The budget is a detailed description of how every dime is going to be spent. Everyday expenses are easy to determine, and everyone understands the necessity for these items. The money management plan actually considers the overall financial plan and ensures that certain expense categories are included in the budget, along with a reasonable amount of savings to accomplish the intended goals. For example, most budgets focus mostly or purely on expenses, but not necessarily on saving for an emergency fund, retirement, college, a new car, new house, etc. However, the result of proper financial planning is an actual money management plan that includes adequate savings for funding your goals and even your dreams.
