There are a number of reasons that living on a budget is the best thing you could do for your family. You will be able to put your money to work for you. You will be able to see exactly where your money is going. And you can plan for life’s little emergencies. Living on a budget is an excellent way to save for a trip, pay for your children’s education, save for any big ticket items you may want, and to overall live debt free!
Every week before I get paid I list all of my bills. I create a spreadsheet and list what bills are due. I also list my paycheck information. This is extremely helpful for those that do not make the same amount every week. With this method, you are able to see exactly what you have to work with. I make sure that everything I want to spend my money on with that paycheck has a place to go, even small purchases like coffee, eating out, and any miscellaneous purchases. This method also allows you to track your miscellaneous expenditures. You will be able to calculate that you spend $200 a month of coffee!
Budgeting is also helpful if you are having a hard time financially. You are able to live within your means and not stress and struggle about how to pay your bills. When you budget you are able to pay who needs to be paid and make any changes with services if they are not affordable to you. My main reason for creating a budget was to have a better handle on my money.
I am living comfortably; however, it seemed as if my money was leaving faster than I could make it. After creating a budget, I am able to pay all of my bills and budget to have money for myself. It is also important to have a budget to save for large items. College tuition and retirement are the first that come to mind. The cost of the average college tuition rises every year. And it would be wonderful if you could save your children the children the torment of student loan debt in the future. We must also save for the time when we are no longer able to work. The time will come for most of us and we need to be prepared.
If you think that how you save and plan now will determine how you live in later years, I am sure we would all be tighter with our budgets.
