Why Do I Need a Budget?
Let’s be real here. Nobody likes going to a restaurant and having to decide what to eat based on the price. Likewise, nobody likes ordering what they want and then not having enough money to eat again until payday. Disclaimer: I am a foodie. Having a budget can ensure that neither case happens. How? Because your budget helps you tailor your finances around the life you want to live and the goals you want to achieve.
Do You Know Where You Stand?
Pop quiz – how much money, on average, do you spend each month? How much do you spend on food? Do you spend more than you make? If so, how much in the red were you last month? If not, how much did you have left over? If you can’t accurately answer those questions, then you need a budget. Don’t worry, I have tools that you can use to ace this quiz next time.
Do You Have a Safety Net?
Now, I know what some of you are thinking, “I can’t answer those questions, but I always have money at the end of the month. So I must be doing something right!” That may work for the short term, but do you have enough money to cover your bases for 3 – 6 months if you lose your current source of income? Do you know how much you would need in that situation?
A Budget is Not Your Enemy
Some people shy away from budgeting because they feel like they don’t want to put limits on what they can do. But here’s the thing. A budget isn’t about sacrifice. A budget just helps you focus on what you love and achieve your goals by giving you a clear plan on how to do that. It is literally your financial yellow brick road. And the best thing is that you can live an enjoyable and healthy life even on a budget!
It’s all in the technique. You don’t have to starve yourself or eat cheap processed foods and you don’t have to say no to every invitation to hang out. You just have to reallocate your money from things that don’t bring you joy to things that do.
So since you’re now (hopefully) convinced to create a budget, click here for a step by step guide to create your very own. Happy budgeting!
