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Having a budget is the #1 thing you can do for your financial well being. This simple yet effective plan allows you to manage your money and understand what you are spending. A budget does not have to be super complex nor does it need to be stressful to create. Here are 5 Budget advantages to make you successful! Just keep in mind that setting a budget is only the first step in financial success. You must stick to your budget to be truly successful.
budget advantages
Defines Objectives/Goals
When you have a budget, you end up needing to establish your long-term objectives. In turn, determining what your goals are. Some families have many goals; others have only one or two. It doesn’t matter how many you have, ensure you have defined them. You may not be able to achieve all your goals at first, and that’s ok. Work on the most important ones that will ensure financial stability first. One of your most significant budget advantages is planning. Setting up goals allow you to project your plans to the universe. *** Pro-tip: Vision Board: What is it?
Forces you to prepare
Having a budget makes you sit down and prepare for purchases and future expenses. For example, almost every birthday in our family takes place between July and October. That 4-month stretch has an increased gift budget because we know we will need to spend more on gifts those months. Looking at the big picture of our overall budget allows us to put money aside in off months so that we aren’t struggling to make those purchases later. This applies to every area of your budget. From car repairs, clothing expenses, school fees, etc. Having a plan in place and a way to save for those expenses makes them easier to deal with. *** Pro-tip: 15 Tips on How to Save Money
Set up an Emergency Fund
One of the most significant budget advantages is setting up an emergency fund. Most financial advisors and other business professionals recommend you have three to six months of living expenses. However, when first starting out having this much in an emergency fund may seem unrealistic. If that is you, set aside something between $750-$1,000 to help you in case of an emergency. If your car breaks down, the plumbing goes out, or something else happens you need a quick and easily accessible way to get cash fast. Having a budget allows you to save this emergency fund so that you don’t end up curled in the fetal position crying yourself to sleep not knowing how you are getting to work the next day. And Yeah, we’ve been in that position before.
Know when your bills are due
Budgets force us to pay attention to our statements and their due dates. If you are planning out when you will spend your money, then you need to know when that money is owed. This way if you have a bunch of bills due the first of the month you won’t suddenly be short because you made a big purchase on the 20th and therefore didn’t keep that money allocated as it should have been. ***Pro-tip: 5 useful ways to save money on utilities
Happier and Healthier
The last advantage to having a budget which will most certainly make you more successful in allowing you to be happier and healthier. When you start planning out your money, you will probably start to cut out unhealthy habits. Additionally, not stressing out about your money continually is sure to make you happier in life. Finding financial freedom among the chaos of today’s world is indeed a blessing and a huge stress reliever.
budget advantages
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