A goal without a plan is just an idea. An idea without action is just a dream. And, a dream unfulfilled is one of life’s greatest tragedies.
Whatever your situation, one of your goals should always be to make tomorrow a better day than today — regardless of how good today may be. When it comes to your finances, creating a budget within which you can comfortably live is the best way to do this.
It’s also why budgeting matters.
You’ll Manage Your Money More Effectively
And, right about now you’re probably going; “Duh! Tell me something I don’t already know.” Yes, it’s true; we all know this. However, many of us still don’t a clear picture of what it means.
You can predict large upcoming expenses with a budget and be ready for them, as opposed to getting blindsided and going into debt. You’ll also have a stronger sense of where you are financially, which can help you determine the best time to make expenditures, rather than buying things only to wonder how you’ll pay for them later.
You’ll Avoid Running Out of Money
One of the most significant calamities befalling any household is seeing a month continue after all of the family’s cash has run out.
Working with a monthly budget planner like Clarity Money will help you ensure this doesn’t happen regardless of how much money you make. It’s all too easy to blow your pay in an ineffectual way if you don’t have a list of the obligations you need to cover — and a plan to follow to cover them.
It Makes Getting a Loan Easier
When you apply for a home loan, a car loan, or even an apartment, one of the first things the people on the other side of the transactions want to know is how much money you make, and how much you already owe.
If you’re adept at budgeting, you’ll be able to provide the answer to that question before it’s even asked. You also avoid blundering into situations your income won’t support.
It Reduces Stress
Collections calls always come at the least opportune moment. Of course, there really is no favorable moment for someone to call you to remind you of a debt. Here’s what life is like in collections, if you have yet to experience it.
You’ll cringe whenever an unfamiliar number shows up on your phone after you’ve answered the first one or two calls. You’ll feel pangs of anxiety when collectors’ text messages appear. And, no matter how good you get at blocking them, skip tracers have a near infinite roster of numbers from which they’ll phone you.
However, even before the calls start, you’ll lie awake at night as you’re falling behind on your bills. Struggling to figure out how to deal with debt makes sleeping difficult. And now that you’ve read this, it will be particularly aggravating.
Why? You’ll realize you it’s happening because you failed to establish spending parameters to keep you out of financial trouble. Which is how budgeting reduces stress.
It Creates Happy Surprises
With a budget, any time you achieve savings over and above the budgeted amount, you’ll get a good feeling.
Let’s say your utility bill is usually $150 monthly, but the weather is unseasonably mild one month and the bill is only $100 the following month. That’s a pleasant revelation — one you would not have realized if you didn’t know what it usually costs.
Without a budget, those little victories go unnoticed, which is yet another reason why budgeting matters.