What Is an Outcome-Based Budgeting System?

 

When people 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.

 

The best 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.

 

 

Being 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.

 

The best 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 financial goals.

 

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 needs.

 

 

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 a reality.