I always go on about having a budget, especially when you are in debt. So with that in mind todays post presents 10 reasons why you should have a budget. If you don’t already have a budget and are struggling with debt, now might be the time to start looking into setting up a budget.
For those of you who already have a budget, I would love to hear about your reasons why you have one and how it helps you. Please leave a comment and share your wisdom!
To get back on track, here are 10 reasons why you should have a budget.
1. You know where you are with your money
When you have a budget and stick to it, you know where you are with your money. This means that you should be able to see any problems further down the line and can take steps to resolve them.
2. You can see what you are spending your money on
When you make a budget, you can see where all your money goes. You might be shocked to see where some of your money is going and perhaps will make a change and instead save that money.
3. You can plan your spending for a set amount of time
If you have the time and patience, you could make up your budget for the rest of the year. Whilst only a crystal ball will allow you to know what will happen in six months time, you can still have a rough guide of all your regular expenses.
4. You can plan your savings
If you are looking to save money, a budget can help you. You can look at what you are spending and see whether or not you can reduce your expenditure. For example you could reduce what you spend on your weekly shop. The money saved can then be put away for a rainy day.
5. A Budget helps you take control of your finances
Knowing where you are at, and what you are spending your money allows you a degree of control over your finances. Living month to month, not knowing where you are at however is dangerous and can lead to debt.
6. Helps you stop making impulse purchases
You know the types of purchases I mean here. If you know that money is tight because you have budgeted, you may think twice about that impulse purchase.
7. Helps you with your Debt Repayments
If you are in debt, having a budget can help you plan for ways to pay off your accounts. So if you can make some savings one month, you can use those savings towards paying off a debt.
8. Takes away the worry of money
If you have a budget and know where you are at with your money, then you no longer need to worry about making it through the month, so long as you stick to your budget that is.
9. Budgeting is a good habit
Budgeting is a good habit to get into as in the long term, it will help you with managing your money more effectively. Better money management usually equals a happier person, because money is one less thing to think about.
10. You can see why you are in debt
Once you have set up a budget, you should have a good overview of how much of your income is being spent due to debt. If you have been using your credit card to support you financially then you may be able to take steps to stop this. As I always say though, if you are in debt and are struggling, head over to the Debt Help page to see a list of organisations who can help you.
So there you have it. 10 Reasons why you should have a budget. If you have your own reasons then I would love to hear about them. Please leave a comment below to let us know your views and why you budget.