6 reasons why budgets help improve your financial situation…
- It helps you with GOALS: a lot of our goals are based around financial expectations. Things like buying a car, going on a holiday or purchasing a new product. They all require we have or save up our money. Setting goals with a financial outcome will help us better understand the importance of a budget.
- It helps you not SPEND: when you set a financial goal, you are working towards something. When you work towards something, you are reminded of how important budgeting is. If you look at it from a financial standpoint, things like your $5 a day special coffee fix, adds up to $150 a month you spend on something you likely don’t need. That adds up to $1,800 a year you can be putting towards your goal.
- It helps be more PREPARED: having some extra money in your bank account never hurts. Especially for those “emergency” situations. Starting to save for a “goal” will put you in the habit of saving, having a good habit like saving money is going to work in your favor. Once you reach your goal, you will be in the habit of saving, allowing you to save more money for more things like emergencies.
- It helps your FUTURE: investments are important for your future. Whether you invest in education, a home or retirement, you are investing your money in something with long term gain. Once you have a budget, you are better able to understand where and how you can make some extra money, allowing you to put more away for your future.
- It helps organize other aspects of your LIFE: creating a budget and seeing where you are spending your money can help your health. Without a budget you may not realize how much money you are spending on eating out… things like fast food and sit-down restaurants or how much money you are spending on booze or other unhealthy habits. Creating a budget could open your eyes to what you spend your hard-earned dollars on.
- It helps with STRESS: need more shut eye at night? Bills on your mind? One of the leading causes of stress is financial. Creating, implementing and committing to a budget can help reduce stress and get you back on track to a good night’s sleep.
Would you like help creating a budget? Get started today with Alist Administrative Services.