Most of us, at one time or another, have fallen for the misconception that not being able to spend our money any way we want takes away our freedom and makes us feel trapped. It might seem like a prison sentence to many, not providing yourself with the happiness and excitement that comes with having new possessions. That couldn’t be any further from the truth. Here’s what life looks like when you budget your money.
How to Budget
While managing your money using a budget may keep you from buying that fun toy, you’ll be rewarding yourself with more financial freedoms down the road.
Budgeting is a tool that provides a set of directions and priorities that will help you reach your goals. You’ll be able to enjoy life more fully, not only in the future, but in the present as well. This is what life looks like when you budget your money responsibly.
Budgeting Gives You a New Perspective
Living on a budget may give you a new perspective when you’ve been making financial decisions without one for a long time. This new way of thinking will change your life for the good, we promise you that.
You’ll be more aware of where you are wasting money and where you need to cut back. It may even give you motivation for saving that you haven’t had before.
Budgeting Takes Away Stress
Stress can be so mentally and even physically draining when we give it power. Making unnecessary purchases on a regular basis is adding fuel to that fire without us even realizing it. Who couldn’t use a little less stress in their lives?
Sticking to a budget will keep you from wondering how you’ll be able to pay your bills on time. If you and your spouse often have arguments related to your finances, a budget might help put a stop to that.
Sitting down and creating a budget with your spouse or partner helps the two of you understand that you’re on the same team. You’re both striving towards similar goals and are wanting the best for your family. With these things in mind, the tone of your conversations about your finances should improve.
You’ll Waste Less Money
Living on a budget will help your family waste much less money then you would if you continue living life without one. Think about traveling to a distant place you’ve never been to and heading out without a map or GPS.
Not only is that destination far away, but after a while, you’re wondering if you’re headed in the right direction. Without a budget you’ll be spending money aimlessly and never reaching your goals.
So what do we mean by less wasted money? There’s a number of ways that people waste money without realizing it. Are you a big coffee drinker and stop by the Starbucks drive-thru window every morning you’re headed to work? That’s over $100 a month if you’re one of their favorite customers.
The same thing happens when you head out to eat. You’re going to be spending a whole lot more by eating out then you would if you stayed home and cooked a meal for your family. It might even be time to get rid of the cable bill and switch to Netflix, Hulu or Amazon Prime.
You Learn How to Be Frugal
On a budget, you’ll learn how to be frugal with your money and make it stretch further. Take for example buying a car. Most people usually hold on to their vehicles for around 5 to 6 years.
From a budgeting perspective, buying a brand new car makes no sense when you can buy a beater for much less and get the same amount of life out of it.
No More Debt
Yep, you heard that right! Say goodbye to debt when you plan to live on a budget.
If you struggle with debt from past poor financial decisions, think how much freedom you would feel and how your life would change if you were debt-free. You’d be able to breathe a huge sigh of relief, feeling those invisible shackles fall off of you.
Life on a budget not only helps you say no to any more debt, but it also helps you get out of debt quicker. You have the ability to put more money towards your loans and extra principal payments towards your home mortgage because you’re not spending it on pointless things.
Saving Becomes an Easier Habit
Living on a budget will not only help you spend less but also help you save more. This point is huge, especially for your future. Saving money becomes a lifestyle for families that stick with their budget because they’re not spending money on things that don’t matter.
Once all those bad spending habits are out of the picture, you’ll be surprised how quickly you begin saving money.
Dreams are Obtainable
It’s great to have dreams and goals for your future. Everyone would like to be able to retire early, settle down in a nice house, and travel every once in a while. But you have to start moving in that direction using small steps at first.
Failing to save for your future will change those plans indefinitely and they’ll have to remain dreams. Keeping useless spending doors closed now will allow you to open an exponential amount of doors and opportunities in the future.
Living life when you’re on a budget is not perfect no matter who you are. If you’ve managed to achieve what seems like perfection in this area of your life, you might have turned into a cheapskate that eats ramen noodles every night.
You still need to live and enjoy the moment now, but make sure that you’re questioning yourself when you go to make a purchase. This is what life looks like when you budget!