Who really likes to budget their money?
According to a recent Gallup Poll, only 30 percent of adults polled actually budget their money. For most budgeting ranks right up there with root canals, doing their own taxes and colonoscopies.
And it’s no wonder, budgeting can feel restrictive and is a time-consuming process. It makes us feel like we are constantly giving something up. In addition, if you’re living paycheck to paycheck it can be an emotional drain – who constantly wants to be reminded that they don’t have enough money to do the things they want to do.
The reality is, establishing some type of budget is a necessary process. It doesn’t have to be super restrictive, detailed or time-consuming, but it should help you understand where your money is going. A budget will help you make informed money management decisions.
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- How to Save for an Emergency Fund.
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When you think about the benefits of budgeting your money it’s a “no brainer” that tracking your expenses and knowing what you have for debt will inevitably allow you to save more money. Or maybe cut back on those unnecessary expenses that may help you pay off debt faster.
What most don’t think of as a benefit to budgeting are the emotional and behavioral aspects. Aspects that can be as important as managing expenses and saving money.
Your emotions and behaviors about money can actually dictate how successful you are at managing your finances, and that’s were budgeting can benefit.
If you make the decision to finally create a budget to better manage your money – take control of your finances. Here are three not so talked about benefits of budgeting.
- Confidence – when you make the decision to budget your money you’re making the decision to take control. Budgeting allows you to consistently make adjustments to your finances to improve your overall position – regardless of what your current position looks like. Taking control leads to more self-confidence.
- Empowerment – not just with your finances, with all other aspects of your life – career, family and how you live. Confidence combined with Empowerment allows you to change other aspects of your life for the better.
- Attitude – It’s about thinking differently! When you don’t have a budget your ability to fully understand your financial position is minimized. Creating a budget provides you with the opportunity to think differently about your situation. Inevitably this leads to a more positive attitude and that new attitude begins to change your behaviors. They say “attitude is everything”, in relationship to your finances it can be one of the most important methods for getting out of and staying out of debt.
Sure saving more money, tracking your expenses are all great benefits of budgeting. But it’s the emotional and behavioral aspects of confidence, empowerment and attitude that will provide you with the motivation. The motivation to stay focused and budget your way to financial susccess.
Why do you budget your money? Comment below.