Finance, Get Out of Debt, Save Money

5 Reasons You Need a Budget

5 Reasons You Need a Budget | Living on a budget can be hard, that's why it's important to discuss how a budget can change your life and how to start a budget. It's very important to look into good options for budgets for beginners and make it happen for you #budget #budgeting #budgetforbeginners #beginnerbudget

Hello beautiful people!

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 and how they work but they never dig deep into the actual reasons why budgeting helps you in ways you could never even imagine.

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. It lists both your total income and all of your 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 will help you plan for the things you need AND the things you want, it just gives you a plan and helps you achieve your goals no matter what they are. 

5 Reasons Why You Need a Budget

#1 – Budgeting forces you to have a real conversation with yourself 

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 above our means and lack of a budget is a huge contributing factor. It’s very 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 this budget creation you’ll be able to think of all the ways you want to truly 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 so much stress of 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 this can be minimized if you’re able to budget and openly talk about money with your significant other.

Less fights = less stress = more happy!  😀 

Sticking to a budget reduces stress for a single person as well! We all worry about money stuff on the daily, it doesn’t matter who you are.

If you have a budget, you know exactly how much money you have to spend and you’ll never have to walk up to a cash register and think “is this going to get declined?” when you stick your card into the machine. 

#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 do that? Well, there are these magical things called sinking funds that allow you to save up for things by putting a small amount of money away each month so someday you can do whatever you want!

If in 5 years you see yourself with a gorgeous downtown apartment and a puppy, you could create a “dog” sinking fund as well as your “first & last months 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 expenses!

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 those emergencies you weren’t prepared for. Emergency funds can change everything for you and make life so much less stressful. 

#4 – Budgeting stops impulse purchases 

Budgeting makes you a ton more aware of your purchases which means you aren’t going to grab a box of cookies that you don’t actually need or buy an extra bathing suit just because it’s cute.

You may notice that 99% of stores have really awesome check out lanes these days. They’re filled with cut little trinkets, or snacks, or other things that you get convinced you need when you don’t. Stores are designed to make you spend money which leads to perpetual overspending and you end up in debt because of it.

Having a budget (especially if you use cash) 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 month and it’s going to teach you a real lesson in self-control when you’re starving and eating saltine crackers for dinner.

If you want to learn to be more frugal you should check out our FREE 5 day course called 5 Days to Frugal that will help you be smarter with your money and lead a more frugal life! 

#5 – Budgeting actually makes you healthier 

The thing is when you start budgeting the first place you’re going to cut (most of the time) is junk food & unhealthy habits.

If you’re a smoker you may try and cut back on your pack a day habit. If you’re a serial snacker, you’re probably going to cut back on the candy (does anyone else love candy as much as I do?).

Budgeting can convince you to be smarter in a bunch of small areas of your life to make you an overall healthier person. It’s pretty crazy what controlling your money can do! 

Which budgeting method should you try? 

Personally, I have tried every budget in the books and failed a million times. It’s honestly like a diet and excercise regimen, you have to try just about everything until one sticks. The budgeting method that did the best work for me is always the Zero-Based Budget because it’s so straight-forward and it doesn’t leave much room for interpretation.

If you don’t like the Zero-Based Budget you can always try the 50/30/20 budget which gives you a little more wiggle room and could be the answer to all your problems. 

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. It doesn’t have to be perfect but I promise it will be worth it. 

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!

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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