5 Reasons for the Benefits of Budgeting
A budget is something that is beneficial, I’ve learned throughout my life. And now for the explanations…
1. When you create a budget, you examine your finances. It’s simple to keep spending, only to wake up one day and find you have no money left until your next pay day (yup, been there, done that!).). That is a poor method of handling money. Making a budget forces you to consider how much money you bring in and how much money you spend. Realizing that you are almost always in the red can be upsetting, but by taking an honest inventory of your finances—what money comes in, what money leaves, when it leaves, and why—you can create a strategy for managing your money.
2. You become more realistic when you have a budget. When you have a budget, you are aware of what you can and cannot buy with your available funds. This helps you remain realistic about whether you can take that $600.00 vacation the following month when you already have two past-due notices and other pressing expenses. Without a budget, it is easier to overestimate your income without taking into account ALL of your expenses. With a budget, you can immediately see how much money you have left over for entertainment after sitting down to create your monthly, biweekly, weekly, or other budget plan (based on how frequently you receive your income).
3. Budgets aid in debt reduction. When you can see how much money you owe to your creditors, as I can, it motivates you to pay it off as quickly as you can so you have more money to spend on the things you want rather than just the things you have to! You’ll think, “Well, I could have $500 extra per month if I didn’t have to pay these three credit cards and that car note!”” It encourages you to pay off as much debt as you can in order to put that extra money in your pocket or bank account!
4. You can learn self-control by using a budget. You will undoubtedly feel the urge to splurge when you have a budget. However, every time you refrain from overspending and stick to your spending plan, you improve your capacity to resist temptation when it comes knocking at your door and resist the urge to make an impulse buy… at the mall! Financial security requires self-control; if you can’t manage your spending, savings, and debt, you won’t be able to lead the life you want. You are well on your way to developing financial self-control by making and adhering to a budget.
5. You can accomplish your goals with a budget. As a result of knowing where your money is going and why, budgets can help you achieve your financial objectives. A budget can provide you with a feasible repayment strategy if you want to pay off all of your credit card debt. Your budget will show you where the money will come from, how long it will take you to save for it, and how you can adjust other expenses to make it happen if you want to travel to Hawaii next year. Without a budget, you might only have an idea in your head of what you want, but with the budget, you now have something on paper (or electronically in this day and age) that you can look at to help you along the way.
Lastly, never underestimate the power of having a realistic budget and sticking to it. You’ll start to notice as you keep doing it how it gives you more mental and physical freedom, as well as eventually more money. At first glance, it might not seem like it, but the benefits of self-control and planning 95% of the time (just being honest)… we do fall every now and then) are well worth it!
~Be Blessed~
