Photo courtesy of weddingssc1.
If you want to improve your life, here are 10 good reasons why a budget will do that:
1. You’ll never be broke! You’ve had those moments when your wallet has been completely empty but you desperately needed some cash. One of the main purposes of a budget is to ensure you never run out of cash before the next payday. On a budget, not only will you have money in your wallet, but a savings in the bank.
2. “I have to wait and see how much money I have left after I pay my bills.” If you are like most people, you never know from one day to the next how much money you will have. If you were smarter than most people, you’d be living on a budget and you would know exactly what you have available for extraneous spending at all times.
3. Avoid Credit Card Debt. Having credit card debt decreases your net worth and pushes you to live beyond your means. People who have and live by a budget never have the need to charge a credit card for purchases or emergencies because they have the savings built up with which to use instead.
4. Employment freedom. Financial experts tell you that you should have the equivalent of three months of pay in a savings account. With that, if you ever find yourself suddenly laid off because of company cutbacks, you’re okay. Take your time, look for another job.
5. “Man, I thought I had more money than that.” Living by a budget eliminates those moments when you have no idea what happened to your money. You had it, now you don’t and you have nothing to show for it. A budget teaches you to spend wisely.
6. “What do you mean orthodontics aren’t covered by our insurance?” Having a budget will greatly assist your family in times of need such as this and many other situations. Hey, emergencies happen, those who do not live by a budget are not prepared for them and will not be able to handle them.
7. Your marriage will improve. The number one subject that causes arguments at home between spouses is money. However, with a budget, that will never happen because all your money matters will be in writing, clear and understood. You both will have rules to follow and will know what the other one is doing.
8. Track your spending. You’d be surprised where your money goes if you have never tracked it. Most people spend more money on frivolous things than they do personal needs.
9. Become debt free. Imagine what it would be like to be debt free. Most people, with a professionally prepared budget, can get out of debt in five to seven years. And stay out of debt.
10. Live stress free. Living by a budget will greatly reduce your stress. You’ll feel emotionally better and your physical health will improve as a result.
What To Do When You SUCK
September 10, 2008
It’s important that the initial budget be built around existing financial obligations, of course. Some are easily recognized—monthly bills, for example—but some are harder to ferret out. The (free) Excel workbook “Within Your Means” will help see what you’re already obligated to pay. Take a look: http://www.lulu.com/content/1581272.