The dreaded budget. Everyone hates setting up and recording everything in their excel doc, but everyone should think about having one for their finances. These are the top five reasons why you should consider a monthly budget for yourself.
1. Curves Bad Spending Habits
By setting up a monthly budget you will know exactly how much money you have and how much you can afford to spend. If you know you only have $50 in your checking account, you wont be likely to spend $75 at one time. With a budget in line, you will be more likely to think through your big purchases before you spend money you don’t have and overdraw your account, which is never fun! When you have a budget in place, you can feel better about pricey splurges on items you “have to have.”
2. Shows You How Much Money You Have Vs. What You Are Spending
A budget helps you decide what you can spend on what and set goals for that reason. When you see you are spending more than you can afford, then you can adjust your budget accordingly and cut out the things you can live without. A budget is a good way to see where your money is going and how much you are spending on everything.
3. Helps You Save For the Future
It’s that word that starts with “R.” “Retirement”, that’s it. If you know how much money you have going in and out every month, you will know how much you can afford to save and be on track for retirement. Yes, saving can be hard! But some day your financial future will thank you and you won’t have to worry about making ends meet.
4. Be Able To Fully Pay Your Bills On Time
Knowing your budget can help you pay your bills on time and in full. If you normally can’t make the full payments on time, knowing your financial status will help you know if you can afford all of your bills on time and work towards paying the entire bill. A budget can also help you save extra money for your bills.
5. You’re Prepared For When An Emergency Strikes
Things happen. You might lose your job or your car might break down. Having a safety net to fall back on when something unexpected happens can save you a lot of stress and help with the burden of never ending bills. It makes sense to save for life’s unanticipated moments so you can bounce back quickly!
Whether you want to set up a personal budget or not, there are advantages for having one and most likely you will feel better having one set up. Ready, set, budget!
How hard is it for you to stick with your personal monthly budget?