5 Reasons Why You Need to Have a Budget
So I was wondering…why do budgets get a bad rap? Why do people I know tend to cringe when they hear the word “budget”? Then it hit me: it likely has something to do with how the person was raised. If you were raised in a way that budgets were used to deny you things you wanted, then you may be resentful of “budgets”. There may be a negative association in your mind towards budgets and you think it means you have to restrict yourself to the point of pain. You think you can’t get what you want. That’s why today’s blog post discusses 5 reasons why you NEED a budget.
Reason 1: Budgets help you keep tabs on your money
Keeping tabs on your money is so important. A budget tells you how much you are spending on outside expenses, like lunch at work every day, the nightcaps with the girls on Thirty Thursdays, and those champagne brunches on Saturday. Keeping tabs on your can and will give you piece of mind. I am not saying you can’t splurge every once in a while! I am saying you should budget “splurge” money so that splurge isn’t coming from your rent money. Keeping tabs on those dollars will help them stretch further.
[Tweet “Budgets give dollars a purpose #moneywithaplan”]
Reason 2: Managed Money Goes Further
When every dollar has a job and it does its job it’ll go further. If you have a set budget for food and realize that in order to keep that budget you need to eat out less and cook more that’s making your dollar go further. Small changes like this add up really quickly. Consider a month without swiping to help you gain a better sense of how your money is being spent.
Reason 3: Budgets help you reach financial freedom
What does financial freedom mean to you? Do you think you can reach that without a budget? Without a roadmap? Every tried driving from California to New York? Can you imagine doing that without a roadmap or GPS? A budget is your GPS and roadmap to financial freedom. Guiding those dollars to places where they’ll serve you best.
[Tweet “A budget is your roadmap to financial freedom #moneywithaplan”]
Reason 4: Budgets can help you reach major goals
If you want to be debt free, you need a budget! How else are you going to know how much to pay down when? No budget will leave you flapping in the wind from one due date to the next. And you still only make the bare minimum payment. Do you want to save for a home? You need a budget. Do you want to go on your dream vacay? You’ve got to have a budget. A budget isn’t a restrictive tool! It’s a road map that guides your money to where it’ll best serve you.
Reason 5: Budgets help you live the life you dream
When you have a plan to reduce debt, save, and plan for the future you are setting yourself up to live your dream life. The first step in building wealth is reducing the amount you owe. Period. I say this because the interest you pay on debt could be money used to build your dream life. I am sure your dream life isn’t one filled with bill collectors and court dates. So setting up a budget and reducing your debt are a part of the first few steps to your dream life. No one wants to be a slave to a 9-5 they don’t enjoy just so they can pay the bills. Can I get an Amen?
[Tweet “Budgets let you live the life you dream #moneywithaplan”]
All in all, budgets aren’t things to bash against your head and hold you down. Budgets help you clean up the mess and build a steady foundation for your dream life. This is something that is needed on the road to financial freedom because a house built on a wobbly foundation is bound to collapse. We, as women, are often times the rocks in our family and we need to be “rock steady”. Stay tuned for the next post in this series: 5 Easy Steps to Building a Better Budget…and sticking to it.
Now it’s your turn! Do you have a budget? Why or Why not? Let me know in the comments below!
I always reply!