We need to talk about budget lessons.
When the word “budget” is written in a blog, the collective groan that can be heard from readers could almost be mistaken for some mythical beast emerging from the earth’s crust to fight Godzilla.
It’s understandable because it’s not a “fun” or “sexy” topic to discuss, but there is so much to learn from having a budget. A budget shouldn’t be another chore but a tool to help improve your life.
Fewer arguments about money
If you are married or have a long-term partner, there’s almost a certainty that you’ve argued over money or at the very least a purchase that the other might see as “frivolous”.
Having a budget that you both develop and maintain means that you both have eyes on the home’s finances. With everyone contributing and knowing where the expenses are, there will be less blaming for spending and more understanding. It can also create a united front regarding savings and what savings goals you have.
Seeing the truth
When we help folks living paycheque to paycheque work out a budget, they start to see the whole picture of their spending, and the results are shocking to them. When asked what their expenses are, most people will grossly underestimate their actual expenses. This isn’t done maliciously, but because it’s so easy to forget about an extra streaming service, subscription, or regular coffee shop trip, and all those expenses add up.
You have a budget that lets you see and inspect what’s going on with your finances so that you can make reductions where you need to and put more money into areas that will do you the best.
Budgets give you a boost.
When many folks think about a budget, they think about a document that tells them what they can’t do. We’d argue that a budget tells you the fantastic opportunities you have with your money. Seeing where you can cut expenses that you don’t use means you’ll have more money to pay off debts, save for holidays or big-ticket purchases, or more money for you to enjoy the things you like the most.
Having a budget gives you the ability to give yourself a raise. You can’t go wrong with that.
The best budget lesson that you can learn from a budget is how to make your money work for you. There will be opportunities that you didn’t know that you had before. You could invest, maybe using one of the investing apps we’ve written about before, or live the #financialfreedom lifestyle that we all crave.
If you want to get started on a budget, we have a blog that covers that as well, or if you need additional help with your finances, our team of experts can help you. Click here for a risk-free consultation with one of the fantastic Credit Connection teams.