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Earning & Savings

5 Reasons A Budget Is Needed For Every Occasion

September 20, 2018

“A budget is telling your money where to go instead of wondering where it went.” ~ David Ramsey

Budgeting is very important and it has a lot of benefit to it.

Why is budgeting important?

Do you want to travel one day? Are you interested in building your own business? Do you have a Christmas list but don’t know how much you want to spend on your loved ones? Do you want to buy a new car?

There are different reasons why budgeting is needed for every occasion. And I mean EVERY occasion.

In this post, I will list you the reasons why budgeting can help you achieve your lifelong dreams. Plus, this will certainly give you a perspective on your spending habits.

1. Budgeting Tracks Your Expenses

2. It Helps You Find Wasteful Expenses You’re Spending On

3. You become Proactive In Your Savings

4. It Ensures Your Spending Limit

5. You’re More Organized & Less Stressed


 1. Budgeting Tracks Your Expenses

When you buy something, of course, you either use cash or your debit/credit card. Now I suspect that you have a bank account, where all of your expenses are tracked and listed.

When I started my new job and bought a car at the same time, I had to set up a budget. Since I had a lot of bills to pay, in addition, a budget was necessary for me to organize my money. And pay off my car.

When you monitor your spending, it helps you know what you’re spending on and how much you have left.

2. It Helps You Find Wasteful Expenses You’re Spending On

There are some things that are worth spending. And some not much.

It’s understandable if you’re late to work and you forgot to make your coffee, so you end up going to Starbucks.

Totally understandable. I’ve been there and done that.

But every day? Especially if you’re not even late? Some of that money could’ve been added to your savings account, let alone your travel savings if you had plans to travel.

It’s important to make sure that you’re spending on things that matters first then you can spend on whatever is not wasteful later.

3. You Become Proactive In Your Savings

When you realize your spending habits, you’re sure to pay attention. I know when I wanted to buy a car and realized I had to make a budget, I had to be serious in what I had to spend on. It also helped me to be serious about my savings.

When you make the decision to budget, and you keep at it, it gives you the motivation to save more and focus on the prize.

4. It Ensures Your Spending Limit

This one may make you want to swallow real hard.

Maybe you’re not used to a budget and you’ve spent without the knowledge of how much you have in your account.

If you want to travel, then you’re going to have to make a plan of how you’re going to budget your expenses to save up.

This is when self-discipline comes into the picture.

What if you’re not making enough money to save up? It’s still possible! There may be some things that you may have to let go or cut spending on to reach your specific saving. But if you keep at it, it’s worth it!

If you have to cut your spending at Starbucks, do it! You can make your own coffee at home. Maybe you need to limit your spending on clothes.

*Gasp*

I know, I know! It was hard for me too when I had wanted to save money to travel to Europe ( it was with a family trip but I had to contribute).

But it was very much needed.

5. You’re More Organized

Now that I continue to budget my expenses on a monthly basis, I don’t worry or stress anymore. I know where my money is going, how much I am saving and can spend as little or much as I want to.

One thing that I use to keep my expenses organized is Mint and a small folder organization. You can find this at your local Walmart Supercenter or this one here on Amazon. I love using these things because it has the capacity to store a certain amount of cash.

You can use the folder organization, or money wallet as I call it, to place your grocery money in, or even your travel savings. I use mine to place my grocery money and my credit/debit card so I won’t have to use it. With my money wallet, I don’t have to bring it with me and it stays home, in a safe place.

This really helped me be self-disciplined. I HIGHLY recommend you buying one.

With Mint.com, you can set up your bank account, along with all your bills, and monitor your expenses right then and there. Plus, you can check your credit too! If you have certain goals, like traveling or saving money for college, they have a goal page in which you can do just that.

Conclusion

There you go!

Budgeting is important for any occasion. When you set up your budget, it helps you track your expenses. Second, it helps you know what you’re spending on so you can either limit that particular spending or get rid of it so that you can save your money on more important things.

Third, budgeting helps you make good decisions about your spending habits. It gives you a perspective on what you’re spending on and what you need to save.

Fourth, you get to make better decisions about your spending habits. Lastly, the better you’re paying attention to your budget, the more organized and less stressed you become.

If you need help on setting up a budget, Rosemarie Groner from the BusyBudgeter.com has a step by step instructions on how to set up a budget, even if you’re not good at it.

If you tell yourself that you don’t have enough to spend money on, read this. This will change your mindset on budgeting.

Here is the item I mentioned again, with some others, that continues to help me organize my money. This can also be used for organizing your receipts and bills!

Do you have a budget? What sort of method do you use to budget your expenses? Let’s communicate!

Until Next Time,

Simply Alia

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