Creating a budget is easier than you think
Don't like to budget because it seems too complicated or you don't like going without?
Don't worry, a budget just tracks your expenses so you know where your money goes. An effective budget saves you money and benefits three key areas of your life.
- Take control
Small costs add up over time. By tracking your spending, you can decide what to spend or invest your time and money on, instead of letting it leak away a dollar or two at a time. This can mean the difference between always being short of cash and being able to afford the things that are really important to you: down payment on a home, paying down debt, retirement, or saving for a holiday.
- Reduce stress
Having a working budget reduces the stress in your life that comes with money issues. At a glance you will know immediately what you can and cannot afford. You'll have the confidence to pay bills on time and the resources to deal with unexpected costs when they arise.
- Improve your relationship
Financial stress is the number one cause of divorce, so agreeing on your financial goals and working together towards them will definitely have a positive effect on your marriage or relationship.
Give budgeting a go
A budget doesn't have to be boring. Consider the following ideas:
- Before you buy something, stop and ask yourself if you already have something similar, or if you really need it.
- Leave your credit card at home and take a fixed amount of cash when you shop. Stop once you have used up your fixed amount.
- Internet, phone and utilities services create on-going bills. Take the time to research the best deal so you save money in the long-term.
- Share subscriptions, bulk buy and car pool with friends and family to get what you want at a fraction of the cost.