Why Do I Need A Budget?

/in /by

Hi BFF’s

Before I dive into the five why’s let me tell you what a budget is. A budget is telling your money where to go. It’s a monthly master plan to ensure you are living your best financially unbothered life! It empowers you to get out of debt and live debt-free. How amazing is that!

Budgeting can be tedious. However, being broke is depressing (been there, done that!). I’ll take monotony over “broke”any day. First things first – let’s start by removing broke from our vocabulary. We need to be mindful and intentional with what we say to ourselves. The power of the tongue is real. The more you say “I’m broke,” the more you believe it, and your activities reflect it. Let’s say we are financially slim (our money is on a diet), or we’re in a financial drought (can’t make it rain at the mall or on vacation right now). You get the point, whatever term you want to use is cool, let it reflect your personality, don’t say that nasty “B” word… broke!

Now, why do I need a budget?

You need a budget because it helps you find the money you didn’t realize you had. I know it sounds deceiving. But hear me out. When I created a budget, I realized I was paying for a magazine subscription, which I didn’t even use or receive. You’re probably asking how did I not know? Don’t judge me lol. It was an automatic payment from my debit card, and I never questioned it. It was “only $5.99” a month. $5.99 x 12 months = $71.88. $71.88 I could’ve saved or used to pay down other debt. Don’t let “only” get you. It “only” adds up quickly! This was one example I have plenty more, but you get the point. 

Five reasons you need to budget:

  1. It ensures you’ll have enough money for the things you need and want.
  2. It helps you determine and stick to short and long term goals.
  3. It allows you to make sure you don’t overspend.
  4. It helps prepare for the unforeseeable circumstances. 
  5. It sheds light on poor spending habits. Bird’s eye view on what you need to correct. 

Welp friends, that’s all I have today. Don’t forget to follow me:

IG @financially_UB