Have you ever wondered where to start in your financing journey? When to begin a budget? How to stay organized with money? Here are some useful tips to note and help you throughout your life!
Today, we explore: budgeting continued!
As we talked about in the last blog, a budget is a useful tool to help keep your money and spending goals organized and on track. Today, we will dig deeper into this subject, including real-life examples of where budgeting may be useful as well as the advantages of budgeting.
Imagine you’re an adult. You’ve just found your new job, with a decent pay, and are moving into an apartment. As you scan your room, you notice that the furniture is luxurious and plentiful (maybe even too full, you think), but your food cabinets are empty, and the apartment is freezing cold! As you turn on the sink, no water comes out! Uh-oh, what just happened? See, these are instances where paying bills, feeding yourself, and finding a shelter are very important, but spending too much on a single thing can be very dangerous! You’ve found great (and expensive) furniture, sure, but your bills aren’t paid and you don’t have any food. Here is where a budget comes into handy.
For one, as we know, budgeting helps to organize your spending ahead of time. This means that you will have planned out exactly how much money goes into what thing, or at least an overview. If you have a budget, you are less likely to spend all of your money on one particular thing or area or things and have nothing left for other things. Budgeting also helps to prioritize your spendings, as when you do it, you must consider which needs come first and which come second. You can live a few months without a fancy couch, but not so much with no running water or food! Budgeting also builds your spending habits, as it helps you organize and prepare for unexpected times and events. Overall, this shows that it gives you more control over your spendings, helps you strive for your financial goals, and keeps track of where everything is going.
As these benefits are simply amazing, we simply cannot look at budgeting without falling in love and making one of our own. Budgeting helps to reduce stress over uncertainty on finances and builds organization and control, but overall, it’s as simple as this: budgeting allows you to live a better life.
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