by Deborah Fowles
Why Budget? Here are twelve good reasons:
1. A budget is a guide that tells you whether you're going in the
direction you want to be headed in financially. You may have goals and
dreams but if you don't set up guidelines for reaching them and you don't
measure your progress, you may end up going so far in the wrong direction
you can never make it back. Can you imagine the government or a major
corporation operating without a budget? No, and neither should you.
2. A budget lets you control your money instead of your money
controlling you.
3. A budget will tell you if you're living within your means. Before
the widespread use of credit cards, you could tell if you were living within
your means because you had money left over after paying all your bills. The
use of credit cards has made this much less obvious. Many people don't
realize they're living far beyond their means until they're knee deep in
debt.
4. A budget can help you meet your savings goals. It includes a
mechanism for setting aside money for savings and investments.
5. Following a realistic budget frees up spare cash so you can use your
money on the things that really matter to you instead of frittering it away
on things you don't even remember buying.
6. A budget helps your entire family focus on common goals.
7. A budget helps you prepare for emergencies or large or unanticipated
expenses that might otherwise knock you for a loop financially.
8. A budget can improve your marriage. A good budget is not just a
spending plan; it's a communication tool. Done right, a budget can bring the
two of you closer together as you identify and work towards common goals and
reduce arguments about money.
9. A budget reveals areas where you're spending too much money so you
can refocus on your most important goals.
10. A budget can keep you out of debt or help you get out of debt.
11. A budget actually creates extra money for you to use on things that
matter to you.
12. A budget helps you sleep better at night because you don't lie awake
worrying about how you're going to make ends meet.
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