You’ve probably heard people say this a hundred of times: BUDGET YOUR MONEY! And by now, you may have probably realized that the “b” word is just another one of those lessons that you will never seem to hear enough of. Budgeting has become more important than ever in this current economy we live in today, that’s what you will hear from the team at Northcash. One sure way you and your family can establish some financial security is by following a budget. Here are some pretty good reasons why you need to create and follow a strict budget.
- You keep your eye on the price
With a budget, you can always keep track of your long-term goals and then work towards realizing them. A piece of advice, you will never be able to save your money if you are that guy who tosses your money aimlessly to buy anything pretty that catches your eye. With a budget, you are forced to map out all your goals, keep track of all your financial progress, and also save money that you can use in case an emergency arises. A budget keeps you focused on the main agenda of why you are saving in the first place.
- You cannot spend money you do not have
Many people, at one point in their lives, have spent money they didn’t have. You can owe this to the age of credit cards. A study by WalletHub states that as of 2016, an average of $8,377 was the average credit card debt in every household in the country. The availability of installment loans also provides an easy access to emergency cash.
With the age of plastic, you may not realize that you are drowning in debt until it is too late. You may end up spending too much money on your credit cards without even noticing if you do not keep track of all that spending. A budget puts you in a position where you are in control of your spending.
- Happy retirement
You have a spotless financial record, you have never carried any credit card debt, and have followed your budget strictly to the letter. Good for you! Your future looks bright and set. With a budget, you can even set aside a portion of your monthly income to the 401 (k), the IRA, or any other retirement funds, you know. Over time, this money will grow and secure your future after retirement. Sacrificing little by little now will eventually be worth it in the long run.
- In case of emergencies
Life is filled with lots of surprises; some good, some bad. You may fall sick all over sudden, have an unexpected death in the family, go through a divorce, or even get laid off. All these events can create some unexpected financial spending that you never planned for. This is another reason you need to have a budget set up. You need to have an emergency fund of at least 3-6 months’ worth of your living expenses. With an emergency fund, you have managed to prevent yourself from spiraling into debts as a result of some life crisis you had to sort out.
- You realize your bad spending habits
If you have had your budget for a little while, then you will have noticed by now all the bad spending habits you used to embark on, and how your budget has helped you. You were probably spending money on a lot of things you never really needed to begin with, but now you know better thanks to your budget.
- Better than counting sheep
You spend many nights worrying about all those bills you need to pay, and how you’re going to pay them. Take back control of your finances, and you will never lose sleep again over financial issues especially loans.