Most of us has already tried saving their hard-earned money, however, ended up spending it because you ran out of budget for the month. Then will try to save again, and the cycle will continue until you get tired and give up saving. Feeling guilty? Oh well, I know exactly how you feel.
In this post, I will discuss why budgeting is important and why you should starting doing it now. Pronto!
Budgeting has been around for hundreds of years, yet only few people manage to do it consistently.
It’s probably because budgeting has a poor reputation…
… not all people enjoyed budgeting. We know that.
It’s time consuming and sometimes a stressful thing to do. Seeing all your money go into buckets with none left on your hands could sometimes feel terrifying.
In reality, if done correctly, budgeting will save us a lot of money, time and energy. I’ll show you below in the list what are the benefits of having a budget.
If you want to take a step forward towards achieving your financial goal, then keep reading. 😉
Who Should Have A Budget?
Do you want to buy a new smartphone? New clothes? A new car? Or down payment for your new house? Got a debt to pay?
If you have answered YES to all or any of the questions above, then you should have a budget. Straight and simple.
It will help you determine in advance if you have enough money to spend for the things that you love and make your dreams a reality.
Related Post: 5 Best Ways To Earn Money
Below are the major reasons why budgeting is good for you.
1) Helps You Save Money
Even before we receive our paycheck, we already have a list on our mind where we will spend our hard-earned money. If you will put this in writing (Ahem! Budgeting), you can get an overview of the things that you have to prioritise.
With the help of budgeting, you can allot a certain amount or percentage of your salary to be put in to your savings. The best way to budget your money is by following this simple rule: Income – Savings = Expenses
Using this formula, budgeting will help you save money which you can use later as your emergency fund or use it to invest and create another cash flow. I have created a post on how you can earn extra money to help widen your source of income. Enjoy!
2) Keeps You In Control
We can tell how much money we can spend by forecasting and carefully planning our finances. It will help you keep track of your progress and make sure that everything goes as you planned.
Budgeting also keeps you away from impulsive buying, because you know how to adjust your budget and be patience until you have enough fund to buy that latest gadget or that beautiful dress you saw in your favorite boutique.
3) Helps You Sleep Easily At Night
Having a peace of mind is the best way to sleep sound at night.
If you are in control of your finances, you never worry of Judith (due date – bills on due). No more worrying how you’re going to stretch your budget just to make sure that still have enough foods for your family.
Imagine waking up in the morning, smelling that fresh brewed coffee and that butter slowly melting down the bread, feeling so much refreshed. Hmmmnn…
I like how that feels. ^_^
4) Keeps You Worry-Free In Case Of Emergency
Need to fix your ceiling? No worries.
You have budgeted your income and has set aside a small portion of your salary that you deposited in your emergency fund.
You can use the emergency fund you build to cover the expenses to fix your ceiling. No need to go to a lender and get an emergency loan, which will only drown you with their high interest rate [wink!].
5) Keeps You Away From Bad Spending Habit
Sticking on to your budget plans will help you avoid over-spending and impulsive buying. Because you know how much money you can spend, you will be forced to wait until you have saved enough money, or else everything else will suffer.
Budgeting will help you prioritize your goal.
You’re tracking your progress, remember? When you have a budget, you have also set your goal which you will look forward to and is more important than spending your money for things that are less important or can wait.
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I have always dreamed of that feeling like you never worked a day in your life because you finally and actually enjoy what you are doing for a living. Hey there! I’m Elaine, owner/author of Save that Curl. Join me as we discover ways on how we can generate different source of income and save money for the future while exploring places I have never been before. Let’s make our dream a reality!