We’ve all heard it at one point or another- “you need a budget.” But what we don’t usually hear after that is exactly why we need to have one. It’s important to know why, especially if you’re new to budgeting or saving money. You already know that having a budget can keep your spending on track, but have you ever considered the other reasons why you should have a budget? Yes, there are other reasons!
Why You Must Have a Budget
1. Having a budget can actually help bring your family closer together. I know that it’s not quite obvious how it does, but please let me explain. When your budget is tight, when there just isn’t enough money, stress can cause fighting, tears, heartbreak and more. Your kids might not understand why they can’t have that toy or play that after school sport, your partner might feel frustrated when the bills can’t be paid, and you might feel overwhelmed and unsure where to start. All of that leads to a family on rocky ground. When your finances are comfortable and managed however, your family is less stressed and things just generally flow better for everyone.
2. Budgeting is not only the only way to keep your monthly finances on track, but it’s also the only way to get a true picture of your financial health. You can be sailing along smoothly (or think you’re sailing along smoothly) without one for now. But when things get tight, you encounter extra expenses, or even when you receive extra income, without a budget you’ll run a huge risk of things just going sideways and your financial train jumping the tracks.
3. Another reason for having a budget is impulse buys. Most of us are familiar with the term, but for those who aren’t, it’s where you buy something on impulse. Stores and websites have gotten especially good at showcasing these buys (candy at the checkout lane for example) and they can very quickly shatter your bank account into tiny little pieces. If your money is budgeted, right down to the last penny, you know for certain that there is no extra money to be spent. Knowing this, you’re less likely to give into those impulse purchases.
4. A budget will give you a sense of control. Instead of your money controlling you, you control your money.
5. Finally, having a budget will help you sleep better at night. You won’t have to stay awake worrying about how you’re going to pay this bill or that bill. You’ll know exactly how much you have and where it’s going. And if you do need to make cuts, you’ll have that information on hand and it will make it easier to decide what to cut back on.
There are many more advantages to having a budget so don’t wait to set one up! Your bank account, your family, and your own sanity, will thank you.
Here are some more articles on budgeting that you might find helpful: