It’s Never Too Late To Start A Budget

Wherever you’re at in life, it’s never too late to start a healthy financial life. Whether you’re just starting out or nearing retirement, today is the best day to start a budget. It’s the easiest, healthier thing you can do for your overall financial wellbeing. If you don’t already have a budget, check out these reasons why you should start today.

1. It’s Simple!

Despite popular belief, starting a budget is very simple. Maintaining one on the other hand, is much harder. In its simplest form, a budget is income minus expenses = zero. You don’t need any fancy technology, apps or spreadsheets. A plain legal pad works just as well.

Start off with your total income. Then list out all of your expenses (bills, debt payments, rent, utilities, any other spending). Be sure to include extra spending like groceries, personal items, hair salons, etc. Finally, include any other buckets of funding you want to save for – an emergency fund, regular savings, etc.

2. Freedom

Another misconception about budgeting is that it is restrictive. Many people avoid creating a budget because they don’t want to be “tied down” or restricted in their spending. In reality, budgeting actually provides freedom for those who implement it. Instead of restricting your spending, the budget provides freedom by telling your money where to go. When you spend money while on a budget, you can spend that money, already pre-designated, with the freedom of knowing it was already planned and accounted for. You can still pay your bills even though you went to the salon or the movies!

3. Long-term

The most important reason you should have a budget is for the long-term benefits. Having a monthly budget allows you to plan for the future financially. You can plan for future trips, long-term savings, and other long-term goals. Instead of letting things creep up on you, or planning a few weeks in advance, having a budget allows you to plan months and even years in advance!

Ultimately, it’s up to you and your family to decide what’s right for you. There are a lot of good reasons to have a budget, with plenty of benefits as well. But it’s not easy. It takes hard work and dedication to create a budget and keep it working.

What are your thoughts? What is the main reason you have a budget? Let us know in the comments below!