Budget, Budget and Budget! This should be part of your everyday language.
Want to experience financial security? Having a budget will help you take control.
Here are 6 good reasons why you should consider it.
1. Keeps you focused on your ultimate goal
A budget helps you think abut your long term goals and it get’s you to plan your goals effectively and to keep a track of your progress.
This will help you to become more selective in your spending.
2. You have self control
Budgeting will help you spend the money that you do have on a monthly basis. You will beat the temptations to use your card (excessively) and be able to review your monthly statements knowing what is coming in and out.
3. You can focus on retirement
It is important to think about the future and to not be afraid to think about your future in the next 5-10 years+. Thinking like this is a good sign.
It is important to build your investment contributions and take the necessary steps to may it happen. You will be surprised about how quick the time goes. Just avoid stating the “what-ifs”. Your future is just as important as the present.
4. You can overcome unexpected surprises
Life is filled with unexpected things. For example one can lose a job and be made redundant, a loved one may become sick or injured including other serious issues that are out of your control. Have an emergency fund that is at least three to six months worth of living expenses. This will help to manage expectations and allow you to react quickly to unexpected changes.
5. You will learn about your bad spending habits
Having a budget will get you to think about your spending habits and will help you to re-focus and think about financial goals.
6. Help you to think about other ways to make money
You will be able to think about your current salary and potential business ideas that can help you generate more money.