11 Awesome Benefits of Budgeting Your Money
11 Awesome Benefits of Budgeting Your Money
March 24, 2021 by Todd Kunsman
If you want to start managing your money and get out of a financial rut, then you have to understand the benefits of budgeting. For some people, creating and managing a budget is not that fun and can be quite tedious. Additionally, there is a stigma that having a budget means being extremely frugal and that you cannot have fun or spend any money on yourself.
Although you might need to live a more frugal style pending your current financial situation, budgeting is not about limiting your life completely or making you miserable.
What a personal budget does is show you where to allocate your money and how to distribute your income more effectively.
But if you are still skeptical and need more convincing, I put together a list of 11 awesome benefits of budgeting your money below. Let’s dive in!
Is Budgeting Hard?
For some folks, the mere mention of a budget conjures up images of mile-long spreadsheets, complex calculations, and tight spending restrictions that suck all the fun out of life. If that sounds like you, I have some good news: budgeting doesn’t have to be hard.
Making a budget isn’t complicated: you don’t need to be a financial expert, perform any fancy calculations, or give up everything you enjoy. You do have to be willing to put in the time to understand your expenses, make a realistic plan for your spending, and then stick to it. With a little work, anyone can do it — even you.
Benefits of Budgeting
The hardest part of budgeting is following the plan you’ve created. When the temptation to spend comes calling, it helps to understand and appreciate the benefits of budgeting your money. I’ve made a list of eleven budgeting benefits to convince you to give budgeting a try and to help give you the motivation to follow your plan once you’ve made it.
1. Puts You In Control of Your Money
Several years ago a friend told me, “Either you control your money, or it will control you.” That’s one of the best pieces of advice I’ve ever gotten. Budgeting doesn’t restrict your spending.
Instead, it puts you in control of your money by helping you spend intentionally instead of wondering where all your money is going or why you never seem to have enough.
2. You Become Aware of Your Spending Habits
Budgeting forces you to be aware of your spending habits. You may be shocked to find out how much you’ve been spending on lunches with co-workers, trips to Home Goods, coffee subscription boxes, or any number of other things.
Once you know where your money is going, you can use your budget to help you cut bad habits and form better ones.
3. Helps you set priorities
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