Making a budget and following it are two powerful financial habits. It’s not always easy, or fun at first. But it is one of the best steps you can take to successfully manage your finances. There are many reasons to budget and in the long run, it feels really good to see yourself accomplishing a goal.
Reasons to Budget (There Are More Pros Than Cons!)
1. A budget helps you gain control of your finances.
Think of a budget as a financial roadmap. It will guide you to your destination. It will also reduce arguments and improve relationships because you and your family will know where you are going financially, providing a smoother ride along the way.
2. Budgeting helps you achieve goals.
Whether it is putting money aside for emergencies, a vacation, or a college education, a budget helps you devote resources to those things that you determine are most important. Having a plan also promotes well-being and reduces stress.
3. A good budget keeps you honest.
Documenting purchases allows you to figure out where your money is going. It allows you to stay accountable to your goals. By keeping a budget, each dollar you spend is accounted for. That’s a powerful incentive to stay true to your good intentions.
4. Budgeting helps improve habits.
If you spend more than you earn, you will drain your savings. And if it continues, you will take on debt. By measuring how you spend your money, you will know for sure whether you’re headed for trouble, and you can take the steps necessary to improve your habits.
5. Budgeting helps you avoid debt and improves credit.
By truly understanding your saving and spending habits, you can make your own adjustments to stop living from paycheck to paycheck. You may be able to identify ways to get out of debt and stay out of debt. By paying your bills on time and not taking on too much new debt, you will take the most important step toward building good credit.
GreenPath and GOLD Are Here for You
As always, remember not only are all of us at GOLD here for you, our friends at GreenPath Financial Wellness are as well. GreenPath works to make it easier for everyone to achieve financial health. They can help you gain a better understanding of your spending habits and work with you to create a budget to achieve your dreams. Their financial coaches are kind and caring, and they listen closely to learn about your personal financial situation to find options that help push you forward. They can help you understand your finances and make a plan to meet your goals. Best part? It’s free, confidential, and there’s no pressure!