Do you have an unhealthy relationship with money? Should I convince you why budgeting is important in improving your life.
I know for a fact that a lot of people do not have or maintain a budget. And it’s sad because honestly, budgeting can be a game-changer, especially if someone’s relationship with money is not doing good.
Others reasoned that it feels frustrating to do budgeting when you know you have so little money to manage. But it should not be a reason to avoid budgeting altogether. If only we’ll understand how this simple activity can improve our finances and lives, everyone will surely hop right on to budgeting to earn its benefits.
Budgeting is important because it can help you attain your financial goals
I won’t argue that there are more important things than money. But it is undeniable that lack of money can make a person unhappy. Without question, it is a challenge to be extremely happy when you don’t have food in your stomach; you cannot attain good things in life. Also, without money, you’ll not be able to help a family member or friend who is in desperate need- the list will go on and on.
A financial goal can be about your desire to have a certain amount of savings, have emergency funds, pay off your debt, or attain financial freedom. Achieving any financial goals will surely make you feel happy, organized, and motivated.
Having a financial goal and attaining them will give a person some peace of mind. It will help a person focus on other important areas of his/her life, knowing that he is stable and can rely on his capacity to provide for himself and his family.
Having a budget helps you give a reality check of where you are currently in your financial situation. Because to attain any financial goal, we must have an honest awareness of where we are and how far away we are from our desired goals.
Seeing your budget can help you analyze your situation, what areas are working or not, and what you can do to improve your finances.
It is the purpose of a budget to keep you organized
Everyone loves to see things in order. Your organized desk makes you feel productive and motivated. But, Imagine what an organized life can make you feel?
It will feel amazing, calm, and stress-free.
Undoubtedly, our finances are a significant thing in anyone’s life. When it is all over the place, we can end up feeling somehow helpless. Having a budget can help you put your financial life in order.
It is the purpose of a budget to give us clarity. The fact that you’re not guessing where your money is going serves as an initial process of organizing our finances.
Sure, what you’ll see in your budget may not always be pleasing, or it may make you judge your ability to manage your money. But, it’ll become your starting point to achieve organized finance.
The purpose of a budget is to keep you living below your means
As I discussed previously, a budget gives us a reality check. I believe that it is entirely expected that we can sometimes found ourselves spending mindlessly when we have money.
Budgeting is important because it warns us if we happen to have a bad spending habit. Budgeting gives us a clear line and of what should be our lifestyle relative to the amount of money we have currently.
A lot of people use spending as a means to escape reality or in exchange for instant gratification. Buying luxuries in life is not bad, but only when you are financially capable or as long as you are living within your means.
Instant gratification or being pleased with specific spending can put us off guard. That’s why having a budget and taking it seriously can benefit us by drawing a line to keep us living below our means.
Budgeting is important as it prompts you to take action
Nothing makes me feel bad when I realized that my current earnings only go to my fixed expenses. I’m not too fond of the feeling when my income cannot contribute to achieving my personal financial goals.
It feels bothering to see your budget and say to yourself that, “heck, I can do much better than this.” Our budget serves as a wake-up call to think of possible ways to increase our income or cash inflows.
However, improving your finances won’t happen by simply having a budget.
Budget, equipped with a decision and commitment to make your life and finances better, will do the trick.
Budgeting is a tool to help you make the right decisions
Budgeting is a powerful tool to make the right financial decision. Have you ever heard of financial statements prepared for the use of business owners? In a sense, financial statements and a budget are both essentials in making sound decisions.
Our budget can help us decide what actions can be good or bad to improve our lives. Maintaining a budget is easily accessible to anyone with or without previous knowledge.
Final thoughts on why is budgeting important to your life
Money plays a vital role in our lives. We spend a large chunk of our time every day earning or finding ways to make money. There is no shame in knowing that we want to improve our financial status. Effective management of our finances will put us in better emotions and prompt us to stop deceiving ourselves by spending our money over unnecessary means.
Deciding to improve our personal finance should start now. Starting to budget and making yourself accountable for your earnings and spending are things that your future self will be grateful for.
Cheers for my first post for personal finance topic. All the best!