6 Reasons Why You Need to Make a Budget

Still not on board with budgeting?

Perhaps you’ve been thinking about it for a while but for some reason, you can’t spare 30 mins – 1 hour to actually get it done.

Or you don’t want to.

It doesn’t seem urgent anyway.

I was like you until one day when I couldn’t avoid it any more.

Because my finance was spiralling out of control.

I had to sit down and go through everything and create a plan. Only then did I start feeling control of my finances.

Like a fog was finally lifted. I could see where I was going clearly for the first time.

That’s what budget is.

Making a financial plan for you and your future so that you can see what lays ahead and what needs to be done to stay on the right path. 

Below are 6 reasons why you need to make a budget. And I hope it persuades you to have your finance in order, once and for all.

1. Budget Forces You to Evaluate Your Financial Situations

Budgeting forces you to do a complete audit of your finances.

How much you’re earning and how much you’re spending. More importantly, where you’re spending your hard-earned money.

If you ever counted down for your next paycheck so you could buy your toothpaste, you’re likely living beyond your means.

A budget allows you to access your financial situation and forces you to have an honest conversation with yourself.

Which is, of course, a good thing!

2. Budget Makes You a Rational Shopper

When you know your monthly budget for grocery, you’ll unlikely pick random stuff while shopping food.

No more extra pair of socks or fancy work out kit because they’re “on-sale”.

I was once guilty of picking random stuff such as frying pan or a cute storage unit in my local grocery store.

Since I made a budget though, I’ve completely stopped my impulsive buy.

A budget turns you into a rational shopper so that you no longer succumb to impulsive buy.

3. Budget Gives You Control

You might be thinking budgeting is all about restricting hence stifling.

After all, it feels great to buy anything and everything whenever you want to, right?

But don’t forget the sick feeling when your card bills arrive. Or when you see your dwindling bank balance.

Buying anything and everything whenever we want always come with a price.

With a budget, you have a clear idea of how much to spend and what to buy.

There are no regrets later or beating yourself over one big silly purchase. There’s no nasty surprise waiting for you.

Budget lets you have full control over your money.

4. Budget Makes You a Happier Person

Make no mistake.

Money may not buy you happiness (although I dispute this! ha), you’ll have a lifelong misery without it.

Take it from me.

If you don’t have money? Money is all you think about.

Isn’t money a number one reason for divorce or rows in relationships? People are not very open about money even though it’s important to do so.

Making a budget with a partner will establish common goals.

When you work together towards your goals, it makes your relationship stronger.

You don’t bottle things up, getting stressed over money.

Instead, openly discuss where you’re overspending or where to cut back to pay off debt or save more for future.

Open conversation makes both of you happy.

If you’re single, see if you’re indulging a bit too much.

You may feel you can do whatever and whenever as you have no one depend on you.

But those night outs, eat out or takeaways can add up in a blink of an eye!

Make a budget – you’ll become creative to have a quality alone time, cook more, eat healthy and become happier.

5. Budget Makes You Enjoy Life More

When you make a budget, you eliminate lots of unnecessary expenses.

A couple of times eat out a week becomes a monthly special occasion which you find more enjoyable and memorable.

When your budget strips away unnecessary stuff, life becomes simpler.

Your priority shifts.

You find a rich life not from stuff but from experiences.

6. Budget Makes You Be Grateful

Budgeting makes you realise how much you already have.

Perhaps you never thought saving and investing is not for you.

When you sit down, make a budget and recognise unnecessary stuff, you’ll find you have enough to get you started.

$10 or $50 – you have enough.

Not only that, you start appreciating all the little things, the smell of coffee, crispy air or sunshine through the window.

Your life doesn’t revolve around buying stuff any more.

Along with it comes a peaceful mind from taking back control of your finance.

Final Thoughts

It’s not exaggerating to say that your financial freedom begins with a budget.

Check out this post for the best budgeting system and start with a budget that suits your circumstances.

Read these books and educate yourself about finance.

Taking control of your finance is one of the best things you can do for you, now and future.

 

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