Over sixty percent of adults don’t keep track of their money. It’s easy to understand why. People think creating a budget plan would be a hassle and will force us to take an extensive look into our finances. Such an examination would likely mean we need to make drastic lifestyle changes we don’t want to make. So, our budget never gets created. We go along in our lives spending away only to think about money when we need it.
When it comes to your finances, leaving anything to chance should never be your best option. Doing so leaves you open to unwanted circumstances and often times, disappointment. Negative behavior will start to set in as it will be harder for you to gain a positive money mindset. (See Also: Building A Positive Mindset Around Money)
To think you can control your spending without having a budget plan only leads to an increase in your debt. You’ll rely on your credit cards believing you can pay it off later. The continuous spending on items you do not need will diminish your savings. The amount of debt will add up without you knowing. You do not want take on that sort of debt when you do not have to. Learn how to create a simple budget that helps you stay within your means. This is the best defense you have is to avoid using a credit card on needless items.
Having a flat tire on the way to work, air conditioner breaks down in the summer or rolling your ankle while walking the dog are not fun events to have. Needless to say, we do not like to have unexpected expenses. However, it always seems to come at the worst possible time. We all go through some form of stress and added worries in our life. Emergencies can happen and will cost money. Although unexpected, it should not have to be stressful nor catastrophic. So, the question becomes, when you are ever faced with a sudden expense, how will it affect you? Will your thinking be clear? Will you be ready to act? Will you have your budget plan as your guide? Be proactive to expect the unexpected.
We tend to underestimate ourselves quite often. We say we have less money than we actually do but the savings potential is there. Yet, how do you know how much you can save if you’re not tracking your spending? You are always faced with choices that you will need to make now to gain financial freedom. You might not be the wealthiest person living the most glamorous life. But it shouldn’t mean that you have to live with the least of things, either. To capture your savings potential, discover the sacrifices you deem are necessary. A good budget plan lets you see your bad spending habits and helps you change them for the better. (See also: 12 Frugal Living Tips to Help You Save Money)
Speaking of bad habits, this is where your unaccounted money goes towards. Eating out, spontaneous purchases, credit card interest, etc. The list goes on. We are imperfect however we cannot allow ourselves to throw away our hard-earned money. Before you know it, your coffee, fast food, and poor habits will have lost you a couple hundred dollars per month. Knowing how and where you spend deters you from indulging when you know you shouldn’t. Think of a budget plan as a barrier against temptation. Sometimes, that shield is your last line of defense.
Failed Financial Goals
Getting out of debt. Going on a trip. Buying a new car. These are some common goals people are trying to reach. Unfortunately, without a budget, it will take far longer to achieve, if at all. If you don’t know how to save and change your spending habits, the financial goals you desire will only ever be a dream. With a budget plan, that dream can become a reality. Commitment and performance are essential to achieving your financial goals. (See also: What Does It Take to Achieve Financial Freedom?)
Create Your Budget Plan Today
Creating a budget doesn’t have to be daunting or time-consuming. BudgetPolitan makes sure of that. BudgetPolitan provides you easy to use budget plans that help you to control your spending habits. Our goal is for you to reach financial freedom. Sign-up for free today to start building the financial plan that will work best for you.