More month than money? Five ways budgeting will improve your life
Written by Carl Turner on January 07, 2016.
It’s the start of a brand new year and maybe time for a brand new financial you? If you find that there is more month than money in your life then there is no better time than now to put some new habits in place which will stand you in good stead not just this year but for years to come! The very first step to take in getting your financial affairs in order is to start budgeting properly.
Can you imagine setting off to walk from A to B in a n unfamiliar city with no map, GPS or any other device to help you work out exactly where you are to start with and what route to take to get to where you want to be? And yet many of us stagger through our lives oblivious to how much money is in our bank accounts and what our regular outgoings are. A budget is like a roadmap for your finances and if you don’t have one, then you won’t know where you are headed financially.
Not convinced? Well, here are five fantastic things that a budget will do for you:
1. Stop you overspending
Spending more than you earn month after month is a shockingly common scenario but a habit which cannot be sustained without leading to serious financial problems. Putting a budget in place will put a halt to your overspending and enable you to start living debt-free.
2. Reduce stress
Waiting for payday to come around because you have run out of money and can’t afford to do anything is stressful, especially if you have bills waiting to be paid. Budgeting allows you to take control of your finances and cut out the stress.
3. Improve your relationships
What’s the number one thing that couples argue about? Money of course. Fighting over the finances is up there as one of the top reasons for divorce so it makes sense to put an agreed budget in place so that both partners in a relationship are aware of the financial boundaries and instead of arguing over spending.
4. Prepare you for the unexpected
Losing your job, receiving a surprise bill through the post or being too ill to work could all send your finances into freefall if you haven’t planned ahead. Budgeting will allow you to build an emergency fund which you can dip into when life gives you the unexpected.
5. Fulfil your dreams
I was going to put financial goals but that sounds dull. Our financial goals are really our dreams though and budgeting will enable you to save to realise those dreams. You might fantasise about buying your own home, a round-the-world luxury holiday, paying off your mortgage by the time you’re 50 or enrolling on that university course you’ve always wanted to do. Your goals will be personal to you but whatever they are, budgeting and saving will give you the ability to turn your dreams into reality.
If all that sounds tempting but you don’t know how to go about budgeting, watch this space as I’ll be dealing with that in my next post!