One of The Best Ways of Saving Money is to Start With A Budget

It all starts with a budget!

There is so much information on personal finance available to you today, sometimes it is hard to wrap your head around it all and actually have a place to start.  This can be very discouraging to some people, especially if you feel you are in over your head. We are going to fix that. 

The best place to start organizing and taking control of your money is a budget.  So here is why you should start with a budget;

The top 7 reasons you should have a budget

1. Budgeting saves you cash!   If you have a budget it means that you recognize what can and can’t afford. Knowing how much you have will force you to spend within your means, to look for discounts and use coupons.

2. Budgeting keeps you out of debt.  People who have budgets never experience overdraft fees, go over the limit on their credit cards or have to seek out high interest payday loans.  They always know how much is in the bank, how much is left at the end of each month.

3. If you are in over your head with debt a budget can help you start a plan to pay down that debt.  Knowing what you actually need to spend each month and what it left allows you to make a debt reduction plan.  Once you know how much you can afford we recommend the snowball method of debt reduction, but that is for another post.  

4. Budgeting does not mean no fun, it just means you will plan for your fun and force you to find cheaper ways to have fun.  For example, if you tend overspend on holiday gifts you shouldn’t wait until November to plan for those expenses. It is much easier to start setting aside cash for the holidays in January or February.  You may even find you have money left over after the holidays verses a credit card hang over.

5.Budgeting forces you to look at your needs first which will save you money.  If you plan your spending and buy in bulk you will have more money left at the end of each money.  Check prices at warehouse clubs verses supermarkets.  

5. Budgeting makes life easier.  The anxiety you feel right now over your finances will disappear.  You shouldn’t see this exercise as a burden but a liberating experience.  You no longer will wonder if your debit card will work when you swipe it. 

6.  Budgeting saves you time.  How many times have you wanted to buy something and spend hours negotiating with yourself and you bank account trying to figure out what you can afford to do.  With a budget you will know what you can and can’t afford all the time.  

7.  Budgeting bring stability.  Knowing what money you have, where it has to go is the beginning of living your life to the fullest.  The day to day stability that comes with having and continually working from a budget will make you free.

So a budgeting saves you money, keeps you out of debt, help you plan to get out of debt, have more money for fun, save money on daily needs, a budget liberates you, saves time, and will bring stability to your life.  All of these reasons make a budget the best place to start pulling your financial life in order.    

We are always here to help.  If you have questions about budgeting or any other personal finance matter please contact us at [email protected] and let us help.

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