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Some people think a budget is just a financial thing. They think it helps you see where your money is going, and that’s it. But a budget is so much more than just some financial spreadsheet! The benefits of having a budget can actually impact your life outside of your finances! Don’t believe me? Take a look at the 5 Ways Having A Budget Improves Your Whole Life!
5 Ways Having a Budget Improves Your Whole Life
1. Less Arguments
Without a budget, you and your significant other are spending money without knowing if you truly have enough. Which means that it’s likely one of you will buy something you really can’t afford, and an argument about money will start. One of the benefits of having a budget is that you both know how much money you can afford to spend. You two can use that knowledge when shopping to make better decisions, resulting in less financial crises, and more peace between you two.
2. Less Stress and Worry
When you don’t have a budget, you don’t know how you stand financially. You don’t really know if you’re saving enough for future planned purchases or possible emergency expenses. A budget helps you find out how much money is really at your disposal, and allows you to decide exactly what you want to do with any extra. If you’ve got a good budget, an unplanned expense like an emergency car repair shouldn’t be a highly stressful event, because your budget should have been helping you build a good emergency fund.
3. More Goal Achievement
Maybe your dream is to take a trip to Hawaii. Without a budget, it’s likely that you’re continually spending your Hawaii money on random things you want, but don’t really need. A budget helps keep you in line. It’ll tell you that sure, you can spend that extra $100 on that outfit. But you’ve already spent your clothing budget for the month, so that $100 will have to come from the Hawaii fund. One of the many benefits of having a budget is that it helps you prioritize and see your money as a stepping stone toward certain goals. Do you really want that outfit more than you want to be $100 closer to Hawaii?
4. More Control
Everyone likes to feel that they have a good amount of control over their life. Without a sense of control you’re likely to feel vulnerable, like any little thing could throw your life off track. Without a budget, that’s true, any unplanned expense could cause major problems. But one of the benefits of having a budget is that you can see where you are financially, and what you need to do to get where you want to go. It helps you decide what to control by simplifying areas of you life down into numbers. This gives you something concrete to work with as you make your plans for the future.
5. More Opportunities in the Future
People with budgets are more likely to be financially better off. They may have debt, but they’re paying off that debt. They have bills like everyone else, but they’re paying those bills in full (and likely on time). As a result, people who’ve had a budget for a while tend to have better financial histories, which shows up in their credit score. The better you maintain your finances now, the more opportunities you’ll have in the future to get a good interest rate on big purchases. That could mean the difference between getting an okay house, or the house of your dreams.
Do you have a budget?