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What are the benefits of budgeting???
I thinking I should start to budget. I have a few friends who I know earn less than me but seem to have more money to buy cool things than I do. I am really not very good with money - could anyone tell me some benefits of budgeting??? |
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Hi Joy,
I started budgeting about a year or so ago for the same reasons you are thinking of doing it. Basically, I was bad with my money, I used to buy a lot a useless things I thought I wanted but never used more than once or twice, and found that I never had the money for the bigger things I wanted which a lot of my friends who earned less than I did.
Here are some of the specific benefits for me:
A budget basically acted as a guide for telling me which direction I was heading in financially. When I first started I got very nervous at it was clear I was heading the wrong way, but I stuck with it and it didn't take me long to turn it around.
I started to control my money. I knew that I was not living within my means (I was actually spending more than I earnt), which meant that effectively my money was controlling me.
It helped me to reach my saving goals. At the beginning of the process, I was aware of how much I wanted to save, and I made sure I cut back on spending in certain areas and made money for saving.
I stopped spending my money on impulsive buys for things I didn't really want or need. It was hard at first, but I was focused on what I really wanted so it became easier. I was thinking - would I prefer this shirt, or a deposit for my new house - a no-brainer really!
My wife was a lot happier with me! She was much more controlled financially than I am.
My budget got me out of debt and kept me out of debt. I had so many sleepless nights, now I have no worries about debt.
I would really recommend making a budget - it really worked for me. I hope it does for you too.
Hi Joy,
I started budgeting about a year or so ago for the same reasons you are thinking of doing it. Basically, I was bad with my money, I used to buy a lot a useless things I thought I wanted but never used more than once or twice, and found that I never had the money for the bigger things I wanted which a lot of my friends who earned less than I did.
Here are some of the specific benefits for me:
A budget basically acted as a guide for telling me which direction I was heading in financially. When I first started I got very nervous at it was clear I was heading the wrong way, but I stuck with it and it didn't take me long to turn it around.
I started to control my money. I knew that I was not living within my means (I was actually spending more than I earnt), which meant that effectively my money was controlling me.
It helped me to reach my saving goals. At the beginning of the process, I was aware of how much I wanted to save, and I made sure I cut back on spending in certain areas and made money for saving.
I stopped spending my money on impulsive buys for things I didn't really want or need. It was hard at first, but I was focused on what I really wanted so it became easier. I was thinking - would I prefer this shirt, or a deposit for my new house - a no-brainer really!
My wife was a lot happier with me! She was much more controlled financially than I am.
My budget got me out of debt and kept me out of debt. I had so many sleepless nights, now I have no worries about debt.
I would really recommend making a budget - it really worked for me. I hope it does for you too.