Many people hate to budget. It can seem time consuming. Budgeting does take time, and it does involve some effort. Those who decide not to budget, may be able to pay all of their bills every month, or they may be just scraping by and adding more to their credit cards every month. Here are five reasons you should have a budget.
1) A budget allows you to control your money. If you are consciously assigning money to specific categories, you are directing what you are spending, and know when to stop. You can decide what extras or luxuries are the most important to you and include them in your budget.
2) A budget allows you to achieve long term financial goals. Retirement is something you need to plan for; if you do not put money away now, you will not have it in the future. The same can be said of saving for a down payment for a house, or planning that dream vacation. Budgeting helps you to achieve your dreams.
3) Budgeting will give you freedom to make better choices in the future. Many people look at a budget as being restrictive, when in actuality it gives you more freedom in the future. By eliminating debt and unnecessary spending you are allowing yourself to be able to do things in the future without worrying.
4) The biggest difference between those who are well off and those who are not is the way they manage their money. The wealthy budget or plan where they will spend their money, and they save money on a consistent basis. It is important to remember that the biggest house, expensive cars, and vacations should not measure wealth. Rather wealth is the accumulation of assets. This can be money, property, and stocks.
5) If you are sticking to a budget, and saving you will achieve peace of mind. This can help you to enjoy your life, instead of worrying about how you are going to handle every bump in the road. The bumps in the road take care of themselves, because you have saved and planned for them.
Related Articles:
Four Simple Steps to Setting Up a Budget