We’ve said it here before on our blog and we’ll say it again; a budget is a vital financial tool that every American consumer should be using.
Today’s blog isn’t about showing you how to set up a budget, it’s more about why doing it is so important. (We’ve written many blogs about how to set up a budget and, if you don’t like ours, there are literally thousands of them available online and only a mouse-click away.)
Whether you’re living “paycheck to paycheck” or are lucky enough to be a six-figure earner, knowing where your money is coming from and, more importantly, where it’s going, is the single best way to be financially successful.
By the way, while most people believe that budgeting is all about restriction and cutting back, it’s actually about understanding where your money is going and planning the use of that money so that you get the most benefit from it.
Yes, putting together a budget can sometimes feel a bit tedious and unnecessary but, once you have yours set up and begin using it, you’ll quickly realize how valuable it actually is. A budget can help you to see things about your money that you haven’t realized before, uncover problems you didn’t know you had and, in many cases, help you to discover the best way to free up some of your money so that you can put it towards other, more important financial goals.
Getting started is, frankly, the hardest part. Sitting down and actually creating a budget, for most people at least, isn’t exactly a fun and enjoyable time. Luckily we live in the 21st century where budget spreadsheets and budget apps are available on our smart phones and computers.
Most of these tools are incredibly easy to use, once you learn the basics. Most already have categories for common expenses to help you keep track of all of them and show you what’s happening with your money more clearly.
One of the best reasons to set up a budget is because it will show you exactly where you’re overspending. Being able to track where your money is being spent and, even more, put a cap on how much you’re spending, gives you the control that you’ve been missing, financially speaking, to become financially independent.
Again, the goal of today’s blog was not to show you how to set up a budget but simply to tell you that, if you haven’t done it yet, setting up a budget is one of the most important financial tasks in any adult’s life.
If you have questions or need help setting up your budget, drop us a line and we’ll give you the advice and assistance you need.
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