It's been around for decades, and yet many people still don’t know exactly how it works. This foundational system is easier...
3 Minute ReadTopic: budget
About 32% of adults in the U.S. have a budget and watch how they spend. The way we see it, that means the other 68% are missing out on the fun!
You may be one of the people who doesn’t budget. If the thought of creating one sounds as dreadful as waking up early on your day off, then dread no more! Knowing how you spend and save is the key to winning with money. The sooner you start planning, the sooner you start winning.
Knowing how you spend and save is the key to winning with money.
Don’t let bad vibes like fear or feeling overwhelmed keep you from taking that first step. Here are five reasons why having a spending plan makes you feel on top of the world.
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1. You see where money goes (and where it shouldn’t).
A budget sheds light on how you spend and save. Once you know that, you can see which areas are A-OK and where you can make tweaks to get the most punch out of your bucks. Why pay for a premium satellite TV package if you only watch five channels? Is it a good idea to cancel that unused gym membership and just run around the block for free? Little adjustments are enough to make you feel like you got a raise.
2. It helps you accomplish your goals.
A GOBankingRates survey shows that 57.6% of people had a money goal in 2016 to either pay down debt or spend less and save more. The best way you can pull off those goals—or any others—is to tell your money what to do. Whether you want to cash-flow next Christmas, curb your grocery spending, or tell your car loan to hit the road, you’ll be on your way once you get your plan set!
3. It makes your fear fade away.
That fear of the unknown can scare you into not budgeting. How bad is my money situation? I don’t want to find out! But once you lay the numbers out there, you could very well learn that things aren’t as bad as you thought. The dread evaporates because you can see the good, the bad, and the not-so-attractive—and then start to work on it. A budget takes a load off your mind.
4. The process gets pretty easy pretty quickly.
Budgeting is like that first week of high school—scary at first, but easy in no time. In fact, when you use EveryDollar, you can have your first budget ready in 10 minutes and connect it to your bank so your transactions automatically show up. How’s that for easy?
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5. A budget frees you up.
Some people think the word budget is another way of saying, "You can’t have any fun." Oh, but you can! Making a plan means you direct your money—that’s all. If you can afford to buy some gifts for an upcoming birthday or hit the beach for a long weekend, have at it. It’s your call because it’s your moolah!
Don’t dread making a budget. It’s the aspirin you need to cure any money headaches you have. It replaces your fear with hope. Sound good? Then join the 32% of people who keep an eye on their money. It’s better than not knowing where it goes—we’re 100% sure of that!
Ready to make budgeting a daily habit? Try our free budgeting tool EveryDollar.