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Money vs. Budgets

Money vs. Budgets

Don’t confuse “budget” with “money.” A “budget” is an estimate of income and outgo with allocations made accordingly. No one in my experience in corporate America budgets for some stranger to come along and ask for $250,000 to assist on reaching important goals. Budgets allocate money to pre-existing beliefs and projected needs.

Money, on the other hand, refers to priorities, not resources. Money can be reallocated and budgets can, therefore, be changed. The person who can do this is the person I call the “economic buyer.” Everyone you see has budgets and has money. Don’t argue about budget, point out that the current money should be reallocated because the return on investment is much higher with you than with a myriad of other, current investments (budgets).

Non-buyers have to live within budgets. (Welcome to human resources.) But true buyers can move money around because they believe they’ve found greater priorities for it.

You need to make that you.

Written by

Alan Weiss is a consultant, speaker, and author of over 60 books. His consulting firm, Summit Consulting Group, Inc., has attracted clients from over 500 leading organizations around the world.

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