Rebuilding Lifestyles through Frugal Methodologies
THE BENEFITS OF BUDGETING
Bridget C. Williams
Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you to get out of debt or help you work your way out of debt if you are currently in debt.
Awareness of Expenditures – With budgeting, you are clear on what money is coming in, how fast it goes out, and where it is going to. Budgeting saves you from wondering every end of the month where your money went. A budget enables you to know what you can afford, take advantage of buying and INVESTMENT OPPORTUNITIES, and plan how to lower your debt. It also tells you what is important to you based on how you allocate your funds, how your money is working for you, and how far you are towards reaching your financial goals.
Enables you to Communicate About Money – Creating a budget with your spouse will avoid conflicts and resolve personal differences on how your money is spent. This promotes teamwork on working for common financial goals and prevents conflict on how money is used. If you share your money with your spouse, family, or anyone, a budget can communicate how you use money as a group. Budgeting teaches family members spending responsibility and accountability.
Budget Realities – Taking debt is not necessarily a bad thing if the debt is necessary or you can afford it. Budgeting shows you how much a debt load you can realistically take without being stressed or if taking the debt load is worth it.
For more on this topic: Ways to Cut Spending -Saving Money is not about being Cheap or Stingy.