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Why Should "Budget" Be Your Favorite Word?

Presented By: EJ Cooksey | Thursday, March 27, 2008 | , , , | Comments

Usually no one wants to talk about budgets, no one wants to think about budgets, and no one wants to follow a budget. However, when looked at with open eyes a budget is actually a fantastic thing.

Here are three reasons why "budget" may become your favorite word:

Reason #1:

What did you spend your last $100 on? You may not remember. Maybe it was a pizza, or stickers for your children, maybe it went to piano lessons or a new pair of boots. The point is, many people have no idea where their money goes. A budget puts you in control of your money instead of your money controlling you. When you set, and follow, a realistic budget your cash is freed up so you can spend your money on things that are important to you and your family rather than spending it on purchases you won’t remember buying ten minutes later.

Reason #2:

There’s little worse than the stress money can cause. Debt causes tremendous stress and so does the fear that you won’t be able to pay your bills. It can ruin your health and it can destroy relationships. A budget can improve your relationships. When you form a financial plan with your family you work together as a team to reach your goals. The lines of communication are opened and the stress is eliminated because you have a plan and a team of support. Additionally, when you’re all on the same page financially there are no arguments about money, which makes better relationships with your spouse and your children.

Reason #3:

Some people don’t realize they’re living beyond their means until it is too late and the debt has become overwhelming and stressful. Most people would agree that it is better to live within your means than to get into debt. A sound budget keeps you living within your means and prevents or eliminates debt. A structured and realistic budget prevents the "Oops I spent too much on my credit card this month" mistake that we often make month after month until we’re paying more on our minimum balance than on our mortgage. If this applies to you, don’t let it get to this point. Take advantage of the power of a budget and gain control over your financial life.

There is absolutely no downside to forming a budget and we’ve only scratched the surface of the benefits they provide. Take a few minutes to realistically analyze your spending habits, your income, and your financial goals. I promise you’ll be glad you did.

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