If you’ve heard it once, you’ve heard it a thousand times: BUDGET YOUR MONEY! By now, you’re probably sick of hearing the “b” word. Well, this is just one of those financial lessons that cannot be preached enough. If you and your family want to reduce your debt and achieve financial security, following a budget is the only answer.
In light of stressing the importance of a budget to reduce stress we’ve decided to devote the month of July to all things budgeting! (Are you excited?!)
Many people assume budgeting is only for those who either have a spending problem or experiencing a financial crisis. The truth is everyone should use a budget, no matter what their financial situation is. Our clients here at Debt Cutter are supported through designing a budget as they go through the process of applying for a Debt Agreement to work their way to debt relief. Having a budget is a powerful tool for financial empowerment and here are 10 reasons why you should use a budget.
1. Gives you financial direction
Would you ever go somewhere new without a map or set of directions? Probably not, right? Think of a budget as a roadmap, it sets a path for you to follow so that you can reach your destination, which is financial confidence.
2. Gives you control guaranteeing you don’t spend money you don’t have.
For those who have a problem spending, a budget will help you get back in control of your money instead of letting your money control you. You will learn how to control yourself from impulse buying and overspending.
3. Reduce Arguments
Money often plays a big role in most arguments between spouses. By using a budget, you and your spouse can get back on track and improve your financial situation, together!
4. Improve Relationships
A budget creates a financial plan that the whole family can work together on and contribute to. A family budget is a great way to work together as a family to achieve your financial goals.
5. Prepare Yourself For Emergencies
There will be times when an emergency arises, catching you by complete surprise. A budget can be used to create an emergency fund so you won’t be left wondering what to do when such an instance comes up.
6. Give you insight into your spending habits
A budget will help you to be more value and price conscious when shopping. It will also help you pay more attention to how you consume resources around the house, such as water, electricity, and gas.
7. Help Yourself With Your Debt
With credit cards becoming common forms of payment, it is easy to fall into debt, and quickly! A budget can help you get out of debt. Plus, once you get out, you can continue using it to help keep you out of debt.
8. Help Yourself Save Money
If you are looking to save money, a budget is the perfect tool to help. A budget can be used to save for a goal, such as university or a new home, or used for a large expense, like a holiday.
9. Improve Your Wellness
Wellness is not just about your physical health; it also includes your financial health too. Incorporating a budget into your everyday life can improve your financial health just as a diet can improve your physical health.
10. Reduce Stress
For many people, personal finance is a stressful issue. Using a budget will give you the peace of mind so you are not left lying awake at night worrying about your financial situation.