Even though my blog is not directly focused on money & finances, as an accountant, I do understand the importance of this subject. So I decided to post occasional articles dedicated to this topic, starting with the importance of having a budget.
The definition of budgeting is: “to allow a specific amount of money for a specific purpose.” It is as simple as it sounds; you allocate how much money you can spend on each expense you have.
Though it is a rather simple task, it is an extremely powerful tool as it gives you a clear visual perspective of how much you have available in income, how much you can spend, and where you can or not spend it. In other words, a budget is how you monitor where your money is going, and without it is like hitting that piñata while blindfolded, you are just guessing where to hit.
So, no matter if you make $25,000 or $250,000 a year, create a budget, to make sure you are in complete control of your finances!
A BUDGET WILL ALLOW YOU TO HAVE A CLEAR VISUAL PERSPECTIVE OF YOUR FINANCES
In a technology era, where everything is Electronic Deposits, Debit Cards, Credit Cards, Electronic Payments, etc., without a budget it’s very easy to lose vision of how much you are really spending, where you are spending it, and even worse, if you are just burning money that you could be saving. Once you decide to create your budget, you’ll be able to have a clear vision where your money is going, and where adjustments need to be made in order to avoid financial struggle every month.
NOT HAVING A BUDGET IS LIKE HITTING THAT PIÑATA WHILE BLINDFOLDED, YOU ARE JUST GUESSING WHERE TO HIT
There is no doubt that having a budget is the best tool you can use to truly be in control of your finances. This is something you only have to do once a year, BUT make sure you revise it whenever there are changes like:
Feel free to download the free Budget Template below, to help you create a monthly budget, and take advantage of the great benefits that come along with it!
How about you? Do you have any advice about budgets, that you'd like to share? I'd love to hear from you on the comments below!
Article link: www.joyfulsavings.com/blog/why-should-everyone-have-a-budget
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