Can you remember the last time you tracked how much money you spent in a month? Can’t remember? You’re not alone. In fact, only 32% of households in the U.S. regularly utilize a budget. Despite its lack of popularity amongst the U.S. population, most financial experts agree that creating a budget is the most important step in taking control of your money.
You could probably think of a more exciting way to spend this Saturday morning than creating a budget, but set aside the time and motivation and you’ll find that budgeting can change your life. Here are three reasons why setting up your own budgeting plan is the most important use of your time this weekend.
71% of adults agree that money tops their list of stressful subjects. Creating a budget will allow you to take back the reigns of your bank account and breathe a deep sigh of relief.
When you know exactly how much money you have coming and going each month, you can make adjustments to ensure that you aren’t living above your means. Learning to save more than you spend allows you to build up emergency funds, plan for the future, and stop living paycheck to paycheck. But without a budget, it is extremely difficult to track where you might be going wrong and what steps you can take to spend less and save more.
Once you’re back in control, you’ll see a decrease in your stress levels and sleep better knowing you took action to make a positive change in your life.
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Setting a budget allows you to determine how to spend less and save more. You can actively start saving for the most important goals in your life. Whether your savings are going into a retirement fund, a college savings plan, or a special club account for next year’s holiday season, you can focus on the future – not last month’s credit card debt.
Once you know exactly how to divvy up your paycheck, and you know that you have money left over after paying your bills and contributing to your savings, you can enjoy guilt-free fun. Spending money can be built into your budget each month, so you can still splurge on your favorite things. Whether that’s dinner at your favorite restaurant, a golf trip to the beach, or a shopping trip at the mall, you can rest easy knowing that the money you’re spending is not coming from your monthly rent or mortgage payment.
Living on a budget is guaranteed to decrease your stress and increase your savings. It is the most important step to financial success because it allows you to take control over your personal finances and live the life you want to live.
Start tracking your expenses today with help from our easy-to-use budgeting template, built for those just starting their own budgeting journey!
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