If there is any area in your life that is crucial to keep organized and stay on top of, its your finances. Life happens. We get busy running errands, going to work, taking care of the kids, going to school, spending time with friends and family and the idea of managing our money just does not sound appealing. However, if you do not manage your money the next thing you know your spending habits are out of control, you may end up dipping into your savings or overdrawing your bank account and that leads to a downward spiral of losing a lot of money on bank fees and struggling to get back to good. The best course of action to take is starting a budget. Not only will starting a budget help you know where all your money is going, but you will save money instead of throwing money to the bank or credit cards on fees.
I know the idea of starting a budget sounds like a tedious task, but it’s really not that bad. Setting up the budget is the biggest step and once that is accomplished you just have to maintain it. You can either update it daily, which will take about 5 to 15 minutes or you can do it every few days or once a week and spend about 30 to 45 minutes on it. Taking that allotted amount of time to maintain your budget is not only a wise investment of your time, but you will reap benefits from it for a long time.
I read somewhere a simple sentence that rings very true. It said that a carpenter would not start building a new house without a set of blueprints and for us to not have a budget is like being the carpenter without the blueprints. It just does not make any sense to make, spend and invest your money without having a plan to guide you and not knowing what your next course of action is.
Starting A Budget Helps You Save Money
So what is a budget? A budget is a plan for your money. It is an outline of whats coming in and whats going out and a forecast to help you see what you can do with your money. With a budget you can set goals for your money, see where you can save money and understand how to make your money work for you. It is the first step in financial organization!
With 2009 coming to an end, the economy has been hard on most people. A lot of people have lost their jobs, lost their cars or homes and even lost their savings. We, as a people, need to try and prepare as much as possible for situations like these, as well as the standard emergencies that come with life so we do not crumble. Starting a budget will help you prepare for these. Being aware of the state of your money as well as being in control of that money will allow you to take advantage of opportunities that you may have otherwise missed. You will never have a situation of wondering if you can or cannot afford something because you will know. You will be in control of saving money for emergencies and big occasions. It will help you understand where your financial priorities are because without knowing that, it’s like going on a boat ride in the ocean and not knowing how to swim. You may stay afloat for a while, but should a wave come and that boat tips over, then what do you do? You were not prepared.
So make it your goal, new years resolution, promise to yourself and your family for 2010 to start a budget, save money, be in control of your finances and have a more fruitful life. This is what I wish for you, don’t you wish that for yourself?