Creating a budget based on your particular level of income is one of the very first things we do
with our clients to help them get out of the payday loan cycle. Having a financial plan (a budget)
every month is vital to creating and maintaining control of your finances. It’s important to know
where your money is going and how much is going out versus coming in every month. In case
you’re still wondering if creating a budget is really worth it, here are 6 reasons you should be
using one.
1. Get out of debt!
A budget is a financial plan! It shows you how much money is coming in versus how much is
going out. It gives you the ability to control your spending and find out how much extra money
you have to pay off your debts. When you’re living without a budget, it’s easy to lose track of
your money. You spend some here, a little bit there. It’s easy to wind up with nothing left at the
end of the month … or worse, in need of more debt! Creating a budget is one of the first and
easiest steps to getting out of debt!
2. Find financial freedom!
Contrary to popular belief, a budget is not restricting. It free you! It gives you the ability to spend
what you want to on the things you want and need to spend it on. It gives you guidelines which
allow you the flexibility to allocate more money to various spending categories. For many
people, once they start living with a budget they actually feel like they have more money than
before!
3. Never worry about having enough to pay for rent (or groceries) again!
With a budget, you know how much income you have every month and you can plan for all of
the important bills like your rent, electricity, and groceries! You can make sure they’re taken care of first, so that you’re never worried again.
4. Save up for the things you really want!
Are you dreaming about getting a new car? Do you want to finally buy a house? Maybe you’d
love to take your family on a vacation. A budget is a financial plan. When you’re planning and
tracking what you’re spending, it allows you to find extra money that can be saved. You finally
have the ability to save up for the things you’ve been wanting like a car, a down payment on a house, or a new TV!
5. Reduce stress & anxiety!
Have you been overwhelmed and stressed about money lately? Are you constantly living
paycheck to paycheck? Do you check your account balance daily making sure there’s enough
left to pay the rent next month? Creating a budget gives you a plan for your money. You won’t
have to worry about having money to pay rent. You’ve already planned for it. As long as you’re
tracking your money and following your budget, your stress levels and anxiety will be drastically
reduced!
6. Create a plan for your future!
You can finally start saving for your future! Would you love to be able to send the kids to
college? Are you excited to save money for a down deposit on a house one day? A budget
helps you create longtermfinancial plans and savings so that you can start creating a great, financially sound future today.