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Budgeting. It’s a word that a lot of people cringe at as it involves money and accounting. A lot of people are turned off by budgeting and that develops more as we grow older. Our parents probably didn’t budget at all so why should the younger consider budgeting either right?
The truth of the matter is that budgeting while you are single can save your life. Not to mention, budgeting as a family is even better.
Not only are you teaching your kids and perhaps your partner the benefits of it, but it’s also a bit of an activity to get closer together. Budgeting has a number of helpful perks that can change your entire life around too!
One of those big perks is that you are better prepared for rainy days. A lot of people want to be covered when the rain comes and the last thing we want to do is get caught in it. The same is true with money. People want to be secure with money, however, a lot of people come unprepared when they run into money problems. With budgeting, you avoid those things entirely.
By simply jotting down your expenses and writing them out over the month, you can notice a pattern in your spending habits. Our spending habits are key as it can allow us to better prepare for those rainy days as well. Perhaps you’ve been dining out a lot this month and you are aware you have some big bills to pay at the end of the next month. You can consider making some adjustments to your habits or even consider getting a small loan to cover those costs when they come up.
What our spending habits also reveal are our priorities as well. It shows us what we value and we can discover more about ourselves. Not to mention we can learn why we purchase the things we purchase as well. If you don’t have a reason to get it, it’s time to put some serious consideration in breaking the habit.
Another distinct perk of a family budget is that it teaches your kids proper budgeting as well. Again not many people are financially savvy in this day and age and most financial advice is passed down from parent to child. As such if a parent has a solid financial background, even if it’s the basics, it’s better than where they are before.
The final advantage is that by having all these numbers out it gives you more perspective on credit limit, but also ways to generate more income. Credit limit is important as people when given credit or loans, can go overboard. Some might blow all of their money on cruises, expensive cars, and other items with no clear idea of how they’ll get the money to pay for it. It’s poor spending habits. Knowing your credit limit is vital so you’re not stuck in debt. As for learning what other ways to make more money, a budget can justify what your next financial goals are. Based on the figures you might need to work to get a promotion or perhaps a raise to fill your financial needs. Maybe you might need a new higher paying job or even start a side-business.
Through budgeting, you can stay ahead of the game and get some serious advantages over people who don’t budget at all.