5 REASONS WHY YOU NEED A BUDGET #NOTQUITEANADULT

5 Reasons You Need a Budget

 

Every person could benefit from having a budget they actually stick to, even people who make $100,000+ a year. Budgeting isn’t just for the super frugal anymore. Everybody knows what a budget is but they never really dig into the actual reasons why budgeting helps you in ways you could never imagine.

 

Before we start, I just wanted to let you know that we recently created a FREE email course all about budgeting that I think you’ll love! It’s called 5 Days to a Beautiful Budget and you can subscribe to it below!

 

What is a budget?

Just in case you’ve been living under a rock and don’t know what a budget is, let’s quickly discuss what a budget is and how it works. A budget is a plan that is created for your money that helps you plan for the things you need AND the things you want.

A budget lists your total income and your total monthly expenses and it creates a plan of where you’re going to allocate that money before it all disappears into the depths of cash registers and your couch cushions. A budget is a key step in hitting all of your financial goals, no matter how big or how small.

 

5 Reasons Why You Need a Budget

#1 – Budgeting Forces You To Have a Real Conversation About Money

When you sit down and start creating your first budget you have to really take an honest look at what you can afford and what you shouldn’t be spending your money on.

I’ll admit that a ton of us (including me from time to time) live about our means and a lack of a budget is a huge contributing factor. It’s really important to start figuring out where you can cut things from your budget to stop living above your means because it’s only going to hurt you later on and you’ll never be able to have the life you truly want.

During your budget creation you’ll be able to think of all the ways you truly want to improve your life and you can create ways that will help you get to your goals!

 

#2 – Budgeting (surprisingly) Makes You a Happier Person

Money is one of the biggest stressors in so many people’s lives and giving your money a plan can take sooooo much stress off of you and especially off of your relationship. So many couples end up fighting about money at least a few times a year depending on their situation, and most of the time this can be minimized by just having a budget and being able to openly talk about money stuff with your partner.

Sticking to a budget reduces stress for a single person as well, everybody worries about money on the daily, so it doesn’t matter who you are. Not having a budget will severely impact your happiness! When you have a budget you know exactly how much money you have to spend, and you’ll never walk up to that cash register wondering if your card is going to get declined again…

 

#3 – Budgeting Helps You Prepare for the Future

The best part about a budget is that you can take the time to imagine your ideal day in 5 years and work backwards from that. What does your ideal day look like? What kinds of things have you accomplished? You can work all of these ideal situations into your budget.

How do you plan for the future? Well, there are these awesome things called Sinking Funds that allow you to save up for things by putting a small amount of money away each month towards a specific goal. Let’s say in 5 years you see yourself with a gorgeous downtown apartment and a puppy. You would create a dog sinking fund and a first & last month’s rent sinking fund. These two things will help you work towards your goal without it making a big dent in your daily life because you’ve budgeted monthly for these things.

Another awesome thing that budgeting helps you with is being prepared for unwelcome emergencies. You can budget a certain amount of money each month to go into a specific account that’s just meant to cover these expenses that you can’t be prepared for, this account is called your Emergency Fund.

 

#4 – Budgeting Stops Impulse Purchases

Budgeting makes you a ton more aware of your purchases which means you won’t be buying an extra box of cookies or buying an extra bathing suit that you don’t really need. If you’re a chronic overspender, you should check out this blog post that will help you break those habits!

Having a budget (especially if it’s a cash budget) ends up making you think harder about these unnecessary impulse buys. Think of it this way, if you know you’re digging into your grocery budget when you buy that extra bathing suit, you aren’t going to have enough money to eat for the rest of the month. This will teach you a real lesson in self-control when you’re starving and eating saltine crackers for dinner.

 

#5 – Budgeting Actually Makes You Healthier

The thing is, when you start budgeting the very first thing that gets cut is junk food & other unhealthy habits. For example, if you’re a smoker you may try and cut back on your habit. If you’re a snacker you’ll try and cut back on the candy and chips.

Budgeting will make you drink more water, because water is cheaper than soda or redbull. You’ll also cook at home much more often because eating out is way too expensive!

Just think of all the crazy parts of your life that budgeting will help when it comes to your health!

 

 

So, Which Budgeting Method Should You Try?

Personally, I’ve tried every budget in the books and failed a million times. It’s honestly like a diet and exercise regimen, you just have to try everything until one sticks.

The budgeting method that has worked best for me is the Zero-Based Budget because it’s so straight forward and doesn’t leave much room for interpretation. Zero-Based gives you a plan for every single penny which makes messing up a lot more difficult.

 

Final Thoughts

Budgeting is one of the absolute best ways you can improve your finances and I highly suggest you start working towards a budgeting system that works for YOU, don’t just try and use one for a long time because someone else says it works. You budget doesn’t have to be perfect, but I promise it’ll be worth it.

 

5 REASONS YOU NEED A BUDGET \ BUDGETING IS REALLY IMPORTANT, SO START A BUDGET! YOU CAN LEARN ALL ABOUT A GREAT BEGINNER BUDGET IN THIS BLOG POST AND EXACTLY WHY YOU NEED TO START A BUDGET #BUDGET

 

Taylor O'Halloran

Hey! My name is Taylor O'Halloran and I'm a huge fan of saving money any way I can.I'm obsessed with dogs and I love all kinds of cheese even though my stomach hates it.  I'm a recent university graduate who just wanted to do her own thing and see what happens! Follow me on the journey!

36 Comments

  1. Budgeting is definitely a necessity in life! I agree that it help you prepare for the future, even if it’s short-term, such as knowing what bills to pay with which paychecks. Knowing everything is paid and taken care of is defintely a stree reducer.

    1. Taylor O'Halloran says:

      so true! that’s why I wish people would stop saying they don’t need a budget! it helps in so many ways

  2. Jennifer Prince says:

    Budgeting is SO important!! It’s so easy to just haphazardly spend spend spend without having one.

    1. Taylor O'Halloran says:

      right? budgets are so necessary!

  3. Meghan Karaan says:

    Budgeting is totally one of those things that you need to do but you don’t necessarily want to do. You are so right that you will feel better in the long run though!

    1. Taylor O'Halloran says:

      Ain’t that the truth!

  4. We totally agree with you. Budgets are so important, for everyone at every age and every income bracket.

    1. Taylor O'Halloran says:

      Thank you!

  5. When I was just starting with work for the very first time in my life, I wasn’t wise with money. It was then that I realized that I needed a budget if I were going to save up for my future. I just think this is really essential even if you don’t have kids or anything yet but yourself.

    1. Taylor O'Halloran says:

      I think it’s MOST important for single people without kids! They’re most likely to spend on silly things haha

  6. Preet says:

    It is really true that budget gives as happiness, you will not see it but in the end you will feel it.

    1. Taylor O'Halloran says:

      So true!

  7. I totally agree with you, Having a budget is a real thing, real conversation with oneself. Controling yourself is the best way to stick with your budget. I’ve been experimenting on how to budget monthyly groceries. Tried it to do it once vs twice or more, well it’s all actually the same if we have the budget for the month.

    1. Taylor O'Halloran says:

      Good job on working on a grocery budget! I find that is the hardest part of my monthly budget

  8. Gladys Parker says:

    Awesome reasons! I have enough for all my bills, food etc I don’t though have any savings. No life insurance or money put away. I am relieved that nothing is past due or has a shut off however that won’t help me if my furnace brakes down, car needs repaired etc

    1. Taylor O'Halloran says:

      You’re doing better than a lot of people out there, unfortunately! Just keep working hard and trying to save where you can!

  9. This is more important than ever, now that I am a mother! Wish I had taken this advice when I was in my 20’s.

    1. Taylor O'Halloran says:

      Better late than never!

  10. Elizabeth O says:

    This is a really great post. It sure will help anyone who is thinking of starting a budget and I love how you explained that it can make you healthier too!

    1. Taylor O'Halloran says:

      Thank you!!

  11. Kristy Bullard says:

    This is a great post! It’s so true that a budget makes us happier and healthier. It may seem like a budget is a buzzkill but it actually can keep our lives more organized and can give us a little bit of peace of mind.

    1. Taylor O'Halloran says:

      Budgeting IS a buzzkill, but a necessary buzzkill!

  12. Yes! Nowadays trend is budgeting, and it is a trend for good reasons!

    1. Taylor O'Halloran says:

      Yeeeess!

  13. I agree, budgeting is extremely helpful and keeps me financially intact, haha. It stops me from making impulse buys and I end up saving more money in the long run.

    1. Taylor O'Halloran says:

      Haha! Impulse buys are so fun sometimes though…….

  14. Geraline Batarra says:

    Such an interesting and informative article. Those are such a great help for us on how to budget our own money. Thank you for sharing this with us.

    1. Taylor O'Halloran says:

      thanks for reading!!!

  15. Great article, healthy does not always mean expensive

    1. Taylor O'Halloran says:

      Exactly! I wish more people understood that!

  16. I love budgeting. It seriously helps you save and financial stability

    1. Taylor O'Halloran says:

      so true! thanks for reading

  17. budgeting totally makes you healthier! Fresh veggies are WAY cheaper than junk food (most of the time)
    It also forces you to eat at home rather than order take-away!

    1. Taylor O'Halloran says:

      People always say eating healthy is super expensive but it just isn’t true!!

  18. A good article with really valuable information and people. Everyone needs a budget, it gives stability and self-confidence.

    1. Taylor O'Halloran says:

      thanks for stopping by!

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