Why Budget your Money?
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What is a budget?
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"A BUDGET IS TELLING YOUR MONEY WHERE TO GO INSTEAD OF WONDERING WHERE IT WENT" - John Maxwell
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Do you ever get to the end of a month and wonder where all your money has gone? Do you want to build wealth or eliminate debt? Do you want to take control of your money so that you have the choice of how to spend your time, with whom you want and when you want?
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If you answered yes to any of the above then you NEED to create a budget.
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Table of Contents
You might think that creating a budget and following it is boring. However, I can almost guarantee you that it will be the most well paid part time job you will ever undertake. It will not require much of your time each month either.
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A budget will help you to spend less than you earn and invest the rest.
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Source: Safal Niveshak
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The main reason why a lot of people struggle to manage their money is because they don't have a system in place. You're setting yourself up for failure by doing this. By creating a budget and following the system I have set out in my blog posts you can become financially disciplined and achieve your financial goals.
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The other reason why a lot of people struggle to manage their money is due to their bank balance lying to them! The amount of money in your bank balance at any given time can fool you into thinking you can afford things you certainly cannot.
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Your brain is simply unable to process the vast number of things you need to pay for month to month all at once. In the moment of making any purchase decision, you might fall victim to your bank balance fooling you into thinking you can afford something you cannot. The last thing you want to do is go into debt as a result of this.
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"EVERY TIME YOU BORROW MONEY, YOU'RE ROBBING YOUR FUTURE SELF" - Nathan W. Morris
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By budgeting your money you have a much better chance of avoiding debt and taking control of your financial situation.
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Benefits of Budgeting your Money
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1. Raises your financial awareness on your actual ability to afford various things.
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2. Allows you to prioritise building wealth or eliminating debt.
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3. Direct where all of your money goes, thus take control of your money.
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Summary
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Creating a budget is one of the first steps to securing your financial future. Just simply creating a budget will unfortunately not solve all your problems immediately. It requires discipline to stick to and a few months to get the hang of it. If you stick with it though it will become easier and easier.
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Click here to learn How to Create Budget​
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"A PERSONAL BUDGET IS A MANIFESTATION OF YOUR DECISION TO GRAB YOUR FINANCES BY THE BALLS" - Money Tree Man