You’ve heard it before. All these financial gurus are always talking about setting up a budget, but is it really necessary? What does a budget do that is different than what you’ve been doing your whole life? Below are 5 reasons why you should start a budget and help you gain a whole new lease on how you live your life.
Reason #1: It gives you an idea of where your money is going so you can tell it where to go.
Before I started tracking my expenses and budgeting, I didn’t realize just how much money I was “wasting.” A latte here, a quick fast food meal there, all seemed relatively cheap, so why was I still running out of money? Turns out all those “little” purchases add up. FAST.
Reason #2: It makes each purchase intentional – no more filling your house with material matter.
When each dollar has an assignment, you will start to realize what is really important to your life. As Marie Kondo says, “Does it bring you joy?” My answer to a lot of things was no. I have so much junk just piled in corners. That shelf I just had to have to put all my knick knacks on? Still not hung up. That cute scarf that was on sale? Never been worn.
Reason #3: It changes your attitude on money – live by experiences, not stuff.
As I started watching my money and spending, I started seeing what was really importance in my life. And, it wasn’t things. It was experiences. Instead of eating out all the time, I would much rather eat at home and spend that time cooking with my kids. That’s a bonding experience that can’t be manufactured elsewhere.
We can start traveling more. I love to travel and introduce new things to my kids. I want them to have a more worldly view of life. Rather than buying things I may never use or wear, I would much rather take my family on a road trip. My goal is to visit all the major cities in the US and then start traveling overseas once the kids are older.
Reason #4: It strengthens marriages.
When you sit down to do the budget every paycheck, it puts you and your partner on the same page. Most marriages end in divorce because of arguments over finance. If you agree on what to spend for the household, there are no surprises and no one is caught off-guard by that extra purchase. It helps decrease the stress in the household, which in turn can help strengthen a marriage.
Reason #5: Children learn by example – good money habits grow into adulthood.
If you don’t think your children listen to what you are saying or doing, you are wrong. Children absorb everything. I can’t remember how many times my husband and I have been talking in the car, forgetting about the kids listening in on us in the backseat, only for my son to pipe up and add something to the conversation. But, it’s still one thing to preach good money habits and another thing to show good money habits. Actions speak louder than words and it’s no more apparent than when you watch a child lear and grow.
