5 Reasons You Need To Start Budgeting Your Money
Throughout this post there will be numerous links to previous articles on budgeting on this blog. The reason for this is simple; you need to start budgeting your money. Yes, the economy is getting better but many people ended up in trouble when things started going badly because they didn’t figure out ways to handle their money, or couldn’t think of why they needed to budget their money. This post will give you 5 reasons for budgeting; here we go.
1. Pay all of your bills. When times get tough it doesn’t mean that bills suddenly go away. As a matter of fact, bills become quite oppressive because they’re harder to pay, even if you’re working. That’s because, as the last few years have shown, the price of many other things keeps going up. You need to know that you have the money to pay your bills, as well as when you need to pay them, and budgeting is the only way it can be done.
2. Pay for necessities. Bills are one thing; buying staples you need on a consistent basis, paying for clothes to replace what wears out, putting gas in your car… with a budget these things get taken care of. At the very least you get to decide what your necessities really are and what’s more important than something else at a moment’s notice.
3. Putting some money away. Having a budget will tell you if you have a little bit of extra money so you can put some away from time to time. Why do you need to think of this? What would you do if suddenly you had to buy new tires for your car, especially now that they tend to run close to $150 per tire unless you can find a deal? What about the brakes on your car, or the transmission? What if a window broke? What if your heating bill was higher than normal one month? Putting extra money away helps you to get through emergencies, and budgeting will help you get there.
4. Having a little leisure time. With a budget, you’ll know if you can afford to go to the movies or take a trip or even spend a few dollars to go to dinner or the casino. One of the tricks of budgeting is learning how to move money around so that you can have some fun here and there with extra money. If you’re not making enough money, you need to know that before you blow a significant amount on those Lady Gaga tickets.
5. Peace of mind. The two biggest worries people have are their relationships and money. Budgeting can’t help with your relationships, but it can help you achieve some peace of mind so that you can concentrate on other things, including your relationships. With budgeting, you’ll know whether or not you have the money to achieve peace, as well as have the opportunity to figure out what to do to get that peace of mind.
Have I convinced you that budgeting is the way to go yet?