Eight Reasons To Create A Monthly Budget
Budgeting can seem like a chore when you feel like you’re “successfully” making it through each month with the bills paid and extra money in your pocket consistently. But are you maximizing your income every month? What more could you do with your money?
After all, it’s not about how much you make, but how much you spend. If you’re skeptical about the importance of a budget for your household, here are eight reasons why you should reconsider.
- Spend less. When you’re aware of the money coming in and going out, you’re more likely to think twice about those non-essential, spur-of-the-moment purchases.
- Have more freedom. By knowing exactly how much you have available to spend after bills and other commitments, you’ll be empowered in knowing how much “free” money you have to work with.
- Don’t neglect any fixed expenses. Have you ever had a bill or monthly expense creep up on you because you forgot about it? No more rearranging funds and stressing out because you forgot about your kid’s martial arts class payment. With a budget, your priorities will be planned for and kept top-of-mind.
- Skip more impulse purchases. Again, being more aware of your money means you recognize its value. You had to work how many hours in the office to afford that pair of new shoes? Maybe you’ll pass on them for now until you can really afford them.
- Have more money in savings. Budgeting means setting priorities and paying yourself is one of the greatest financial priorities you should consider. It’s easy to swipe, swipe, swipe and skip transferring money to a savings account, but when you add saving into your budget, you’ll be more likely to follow through.
- Have fewer misunderstandings. Budgeting is all about working together with those in your household to come up with one consistent plan for how you can work together to reach your financial goals. No more assuming that the other person will cover an expense. With a budget, everyone knows exactly what their responsibilities are each month.
- Eliminate that feeling of living paycheck-to-paycheck. With a plan, you know what money is coming in when and where it is designated to go. You won’t feel stressed about “running out” of money before your next payday since you planned ahead.
- Feel more confident. And let’s face it, when you feel more confident, there’s less room for negative feelings like stress. You have enough things to worry about without adding finances to the list, so take away that element of stress by budgeting.
Remember, a budget is a fluid document that can be updated and changed at any time as your financial situation changes. It should be looked at regularly and assessed for ways you can improve it and make it work for you. If you’ve never created a budget before, here is a handy worksheet that can help get you started.