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USA Real Estate Blog

Budget or not to budget? That should never be a question.

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Another day another dollar and another way to spend it. In the previous posts, Money is earning more…and Let’s talk about saving, baby, we hit upon a few places where you can find and earn money to start your journey to be financially sound.

If you did not get a chance to read those posts check them out in the links above. Yes, those links.

Now that your back, I just going to assume you are all caught up and know the difference between being frugal (which is a good thing in this cents, lol) and earning more money. I will also assume that we know why saving is GREAT and the benefits that come with having funds stashed away for those pesky times situations get rough. Since you gain this knowledge we will be discussing why you definitely need and I cannot stress enough, neeeeeeed a budget.

Like most journeys in life, it not always a smooth ride. You will have bumps in the road, sometimes you have to make detours. This will make it seem like you will never make it to your destination. Low and behold off in the distance your final destination is in sight.

I don’t know about you, but most people use maps to get to where they are going. A budget is one of your maps in this journey. A budget will help you navigate various terrain throughout your life. For such as those drunken nights out with friends where you spent way too much, your car breaking down, or saving for a house. Just like a map, a budget will help you with directions if you get lost and when I say lost I mean spending way more money than you have or intended to. So let us take a look at how to create a budget to maximize your chances of completing this trip.

Creating a budget

Creating a budget may seem like a daunting task that is meaningless, but hear me out. IT’S NOT. If you have been a prisoner to debt or have not been able to figure out where all your money goes each month, having a budget will definitely help.

Here is a resource on steps to creating your first budget. Basic, but very effective. Personally, I use an excel spreadsheet for my budgeting needs, which I update regularly to keep myself in balance. If you are good with excel I recommend making your budget from scratch. You can organize it the way you want and will know the ins and outs of your budget since you designed it. There is also something very satisfying about using a tool you’ve created.

If you are not that savvy there are also several apps designed to make budgeting simpler such as Mint, Clarity Money, or Goodbudget Budget Planner, so there really should be no more excuses on why you do not have one. Some of these apps are more robust than others, so choose one that you will be comfortable with and get the most out of for your needs.

Why budgeting matters

When you start budgeting you will know exactly where your money is going. When you have this information you can stop unnecessary spending. A majority of people love to use credit cards to pay for everything. Imagine running up your credit card and now most of your paycheck has to go towards paying off that bill. Not a good position to be when life comes at you with curveballs. I know this may hit home for many people, I have been in this situation a few times and finally realize I needed to change.

Cutting down on spending will lead to having more control over your finances. You will be able to focus on more important matters like starting a side business. Side note check out my blog on why you should have your own business. Or getting out of debt and saving for a major purchase. Having a budget also allows you to worry less since you are aware of where your money is and how it is working for you.

Do you know what that is? That is the file I used to break out of prison, debt prison and I’m giving it to you. Your welcome, read on.

Have you ever been in a situation where you thought you had enough funds to go with friends? Then a few days later you remember a bill that needs to be paid, but now you are short on cash. A budget will not allow you to do that. The days of worrying if you have enough to cover your bills and still enjoy life are long gone. This information will always be available to you if you utilize this powerful tool.

Now that you know where your money is going, how to stop it from going there and put it in the direction you want it to with your map aka budget (you like what I did there, didn’t you) you are prepared to be great. O yeaaaaa! You are also one step close to freedom.

Remember a budget is not something that is set in stone. You can always make adjustments according to what is occurring in your life. Always remember the final destination needs to remain the same. Make sure you check your budget regularly. This ensures you remain on target and make those adjustments if strayed off course. As my bro Dean said “if it don’t make sense, it don’t make cents” and squandering cash don’t make cents. Hope that did not go over your head.

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