No one really wants to budget. Most people hear the word BUDGET and begin to wonder what other things they could be doing besides making a budget. Things like visit the in-laws come to mind. It really makes you wonder if you really need to make a budget. If you want to get technical you don’t have to do anything, but I ask yourself a different question. If you don’t create a budget, then how do you know where you stand with your finances?
When in college students plan what classes they’ll take, how many classes per semester they need and then continually monitor how they’re doing with requirements in order to graduate on time. Without doing this they miss classes that are not scheduled all the time, forget to take their basic classes and don’t take enough classes to graduate in a timely manner.
Your money is no different. If you don’t plan for what should happen to it and then monitor it – it could end up way off track and delayed!
Budgeting Reduces Expenses
In addition, budgeting helps you decide where to reduce expenses – especially if you need to pull back in order to live on less than you make. It is hard to make reductions if you have no idea where you may be spending too much. This is similar to when someone is trying to reduce their food intake, if they do not know when they’re eating or drinking too much then it’s hard to know where to make reductions.
Budgeting May Surprise You
Budgeting and the knowledge you gather from really doesn’t have to be all bad and sad. What if you find out that you are saving too much or really do have the extra money for vacation?
Sometimes the stress of feeling like there is not enough comes from the fact that you may be OVERsaving. You may think this is a good thing, but just like with food you need to eat a minimum amount of calories or your body will not have enough food to operate as it should.
If you’re saving over 20% and constantly feel like you don’t have enough money for vacation, then your money is not helping you operate at full capacity. It’s good to always have enough money to save some, spend some, invest some and even give some.
Don’t hate the budget. Change your mindset to look at it for what it is: a useful tool that can help you achieve your financial goals and create more independence and freedom for you and your money.
How To Create A Budget
There’s a lot of ways to create a budget. Do what works for you. If you need help, then you may want to seek out professional financial and debt counseling. Also, there’s a lot of useful budgeting software available that can walk you through the details on how to create a budget.
Here’s some budget creation software that can help you get started on the road to budgeting: