28 Sep The Truth About Budgeting: Why It Works If You Work It
The more restrictions you place on yourself and your finances the more likely you are to rebel against them and go crazy. Setting a budget that is realistic and doable is key when trying to focus on where your money should be going. If you don’t have a budget currently now is the best time to make one.
To create a great budget all you need to do is write down each bill you have to pay per month and any amounts you want to put aside for dining and entertainment. The dollar amount you are left with after these two categories have been deducted is exactly how much you could be throwing at your debt to get rid of it.
It’ll Take Time But It’s Worth It
The initial budget setup will take some time. While some know exactly what they pay or owe on each bill others may not be so sure. This is okay; you need to find these things out anyway so now is the best time to start. By devoting just a few hours to building a solid budget, you can end up saving so much time, money, and energy.
There are plenty of apps and online software that can help make your budget easier to make and keep up with. This can take what might of seemed like a chore and make it into something you’ll check every single day without realizing it. When you have access to your important financial information at a glance it’s easy to stay on top of your bills and anything else you might be paying.
An added benefit of using budgeting software is the extra fraud protection you’ll gain. When you view your accounts often and know exactly what is happening with each one you can see immediately if something goes wrong. This can help you catch any fraudulent charges in the act and put a stop to them before they hurt you further.
We all know when paying off debt, and trying to save money, the last thing you need is someone trying to steal your hard earned dollars.
Don’t listen to people if they tell you a budget will ruin your personal life, or it isn’t the cool thing to do. It’s the exact opposite actually. When you know exactly what you are bringing home and putting towards bills each month it’s a lot easier to create a budget that doesn’t stretch you too thin. This means you’ll have even more funds to spend on things that make you happy all while shutting those creditors up for good.
This can also mean you’ll be more likely to pay off your debt than if it felt like you were throwing all of your money towards a bill each month. By leaving this wiggle room between your bills, debt payments, and entertainment you give yourself the freedom to enjoy life and not continue on the never ending depression cycle your debt may have you on.
However, you’ll want to make sure that you are careful. This can turn into a negative if you make your entertainment budget too big. Look at what you make and what you need to pay off. The money you allow to pay off your debt can all depend on how soon you want to pay that debt off. If the amount isn’t that much then it doesn’t hurt to pay it off sooner.
If the amount seems overwhelming then you can continue to enjoy yourself just make sure you’re paying a good chunk towards your debt each month or you won’t actually get anywhere.
The Realistic View of a Budget
A budget is a system put in place to help you keep an eye on your spending, allocate enough funds to each bill per month, and ease the stress your finances can take on you. However, when budgeting the wrong way it’s very easy to stress yourself out and make the point of the budget completely void.
Nothing hurts a budget more than not sticking to it. Always remember, at one point you looked at your finances and decided these were the amounts you should put toward each bill to successfully pay them off. If you stick to it and make it work for you you’re sure to start enjoying yourself and be able to worry less about your finances all because you know you have them covered. That’s the best feeling in the world.