The top five rewards of living on a budget

Do you often wonder how other people who earn a similar salary to you are

able to make ends meet? Perhaps one could argue that they are able to do

this because they have fewer expenses or earn an additional income from

other avenues. But the truth is, that if you were to ask around, most of these

individuals would say that they live by a stringent budget, day in, and day out.

Living on a budget is many things, but it isn’t easy. That is why so many of us

struggle with it. However, the rewards one can gain from it outweigh its

challenges.

Here are the top five rewards you can reap from living on a budget:

1. With a budget you don’t guess, you know

If you have to ask yourself whether you can afford something or not, you

probably can’t. A budget’s main purpose is to prevent irrational purchases and

help you pay for the things you really need. There is no point in living lavishly

one week of the month and scraping by the rest of the time.

2. With a budget you can save for tomorrow

Do you want to take an overseas trip, send your children to college and retire

without any financial complications? Well, if you don’t budget and plan for it

early in life, all your short- and long-term goals will only stay dreams. A budget

helps you save for the goals you know you want to achieve but also helps you

save for the unforeseen, unexpected things life might throw your way.

3. With a budget you have less stress and more control

Many an argument or sleepless night has been the result of financial

concerns. Why? Because when we don’t have control over our finances we

start to worry and stress. It makes us edgy and can have a negative effect on

our relationships. With a budget however, you have a plan and you can take

back control of your finances one step at a time.

4. With a budget you are forced to take your money seriously

Instead of focusing on how much money you wish you had, a budget let’s you

focus on the money you do have. It forces you to take every cent you earn

seriously by re-evaluating what you spend it on and asking yourself whether

you really need this or that.

5. With a budget you won’t spend what you don’t have

What do you normally do when you have used up your salary several days

before payday? Do you use money from your overdraft? Or swipe your credit

card? Overspending is a vicious circle that repeats itself month after month

and that is why living within your means, by setting up a budget and following

it, is an essential part of becoming debt free.

Next time we will show you how to set-up a personal budget.

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We look forward to the opportunity to get you debt-free!