What is an Annual Budget?

Annual budgets are usually calendar year based and they assist you in planning for the upcoming year. Without a well defined budget you are unlikely to reach your annual financial goals. Annual budgets are critical for planning purposes where the tracking of income and expenses leads to changes in assets, liabilities, and cash flows used for investments, debt management, or discretionary (buying wants) purposes.

To fit within normal life the annual budget is calculated on a monthly basis. This will help make sure you are on track throughout the year and have less surprises along the way. If you have been over spending in a given monthly you can review you current budget and find out where you are overspending to keep you on track for short and long term financial goals.

Cheers to your health and wealth.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.