The Budget: Why It Is Your Most Important Financial Tool

This post contains some affiliate links. You can find out more about affiliate links on the Disclosure and Policies page.

Ah, the dreaded budget. The list of rules that dictates your life and your wallet. Most people hate the idea of a budget, many say that they do not need it, they are doing fine without it, it’s just not a necessity. They are wrong.

If there is anything, anything at all you take from this blog in regards to financial advice, I hope it is the importance of a budget. Not because I want to you to live a life restricted by the numbers on a list, but because I want to experience the freedom that a budget can give you.

Freedom, from a budget? You heard me, the budget is your number one tool to gaining financial freedom, and here is why.

It shows you where your money is going.

We made our first budget by analyzing our last three months of expenses and averaging out what we spent in different areas each month. Things like rent, internet, and our utilities were not a surprise. They rarely changed each month anyway. The fact that we spent almost 200.00 eating out in one month, yea that we didn’t expect. By seeing where exactly our money had gone in the past we were able to see what changes we could make to achieve bigger goals in the future.

You are in charge of your budget, not the other way around.

You tell your money where to go, you set the rules. Your budget isn’t this big bully trying to confine you into a rigid set of rules. You can choose how much money you want to spend each month eating out, or going on dates, or on that awesome new toy you’ve been eyeing for the kids.. All that matters is that it fits into your budget, that it equals zero when your done. Seriously, that’s the only rule, the rest is up to you.

Your budget is fluid.

Our needs change monthly. Sometimes unexpected events come up, last minute plans are made, or spontaneous opportunities arise. These things do not have to be budget killers, only budget changers. Did you just get invited to see Hanson on tour? I can only dream. Well, you don’t have to say no, you just have to adjust the budget to make it fit. Spend a little less eating out, save up your blow money, don’t buy that new mascara you’ve been dreaming of. It’s all about the give and take. It’s up to you.

Your budget is an asset, not a jail sentence. Simply take charge, be vigilant, and chances are you will discover your money can go a lot farther than you thought.

Want a copy of my free budget planning printable? Simply sign up for my email list to gain access to the free resources page!

***

Are you still confused about your financial situation, or are completely overwhelmed by the idea of a budget and just don’t know where to start? Adam Hagerman, a certified financial planner, has set up a program designed to help. Adam will walk you through the steps of why you need a budget, how to implement it, as well as how to go beyond it to the path of financial freedom. And the best part? Whether you go with his payment plan option or pay upfront the whole 97.00  fee for the class, Adam’s Budgeting for Budget Haters Class will help you control your finances without emptying your wallet in the process.

Leave a Reply