Why Everyone Should Set a Household Budget

These days, credit counsellors and bankruptcy trustees are in high demand, as the tough economy and job market has meant that many individuals and families have found themselves tightening their belts as companies cut back their workforces and people lose their jobs. Families used to living off two incomes have had to adjust to their budget being scaled back considerably, and some have watched their life savings and their credit disappear.

Having to learn to resist buying whatever your impulses tell you to buy can be a tough adjustment to make, but the illusion of unlimited spending is a bubble that needs to be burst. Even if you earn a lot of money, not tracking your income against your expenses is a recipe for financial disaster. Success is often a matter of making a plan and seeing it through, but it’s not easy to set a goal and achieve it, especially if the challenge involved requires changing our long-held habits.

Whether you have a family or it’s just you, budgeting is necessary to ensuring that your financial future is solid. It’s a common facet of being young to feel like there’s no tomorrow, but it’s all to hold onto that illusion for too long. Managing your finances with an eye to the future is a skill that needs to be learned, and unfortunately, it seems like many people make it to adulthood without learning that lesson. You don’t get a house or a comfortable retirement if you don’t start saving early on. To make sure that you reach those important goals, it is essential that you stay in control of your money instead of letting your impulses take control. Saving doesn’t happen by accident.

With more and more transactions being made using credit and debit cards these days, it’s easy for a consumer who is tempted to shell out money for something shiny and new to throw caution to the wind and assume that the budget shortfall will be worked out later. But as satisfying as it is to indulge in the moment, you will pay the price in the long run.

Being successful in saving money for later in life is basically the flip side of falling into debt. Compound interest is what makes it so hard to get out of debt, but it’s also what makes your savings grow into a nest egg. The key is consistency. You need to make a habit of putting money in a savings account. The most common and valuable tip you’ll hear about saving is to pay yourself first. Put money in savings when you receive your pay, as opposed to hoping a portion will be left at the end of the month. You may be tempted to put the money you save towards paying down your debt, but when unexpected costs pop up–and they always do–you’re better off using the money you’ve saved instead of taking on more debt.

Budgeting is the cornerstone of financial responsibility. Those who have turned to a bankruptcy trustee to relieve their debt problems won’t have the option of dipping into credit to fudge their budget. A budget is not a prison sentence. When you feel like you must have something that isn’t actually a need, you are a prisoner to your impulses. A fun life doesn’t have to cost an arm and a leg. Hopefully, you’ll live a long life. If you can learn to follow a budget now, your later years will find you reaping rewards instead of paying for your past.

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Danielle M

Resisting the temptation to buy the things that I don’t really need is the hardest part, but I know I have to be careful and set my budgeting to avoid getting into unnecessary debt

Obasa Funmilola

Setting a household budget helps to cut off unnecessary spending and focusing on the family needs and not want. My mama taught me to always make a budget and stick to it. And that has really helped me.

Last edited 4 months ago by Obasa Funmilola
Jeff

Setting up target and households budget for ones self is something very good. All this budgeting is for a better life at the nearest future. With this educative post, my future is 100% secure.

Frank Jerry

The number reason for me is to be out of debt. I hate poverty so I do all that I can to get out of it.

Alex

I always feel that women are good in this as I see my mom doing it, If you ask me having a budget means money management. As we cannot go on a splurge every time. It can even help in your debt issue. Money is vital so managing it is a must.

Sylvia

Spending more than you make is the number one cause of financial disaster. Having a sound budget and living by it is the key. Thanks so much for the extremely helpful article.

Storm

Investing in a financial advisor is never a bad idea. It can be life changing and greatly improve anyone’s financial responsibility.

Anderson

Having to learn to resist buying whatever your impulses tell you to buy can be a tough adjustment to make.” Having passed through the same I can testify that this can be the toughest urge to resist.

Shantel

Having a saving culture from a young age can have a massive payout in the long run. Sadly many of us are into instant gratification fueled by impulse buying.

Louis

Credit cards are the biggest enemy to staying financially disciplined and sticking to a set budget. In my opinion they should be avoided at all costs if possible.

Teddy

I agree that budgeting is the cornerstone of financial responsibility. Sadly it’s a culture that many millennials are yet to adopt.

Daphne

I have always tried to teach my kids to know the importance of saving from a young age. If they start young then hopefully it can be a habit of theirs when they get older.

Oliver

Resisting the urge to impulse buy is a skill we all need to learn at some point. Impulse buying is among the biggest threats to staying within a set budget.

Patricia

Indeed even if you make a lot of money but don’t keep a budget, you are bound to be financially crippled after some time. The importance of keeping and sticking to a budget cannot be overstated.

Meg W

The ongoing pandemic has made it even more necessary to keep tabs on our household budgets. A lot of jobs have been lost and those that can’t stick to a budget are doomed.

Roy

I’ve always held that we should have a subject called Financial Education in our schools. It could help our future generations a lot.

Last edited 5 months ago by Roy
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