Better Budgeting: Why is it so Important?

 

Whether you earn a little or a lot, whether you have many bills to pay or just a few- budgeting is important. It’s something that everyone with their own money and any outgoings should do, here are just a few reasons why.

It keeps you on track with bills

Managing bills is an important skill to master in your adult life. With so much going out each month to different places, you need to work out an affordable way for everything to be covered. One easy way to manage bills is to open a separate bills account. Add up how much your monthly outgoings come to, and then divide this by four. Each week when you get paid, you can transfer that amount to the bills account and it never gets accidentally spent back onto. If you set everything to come out by direct debit then is essentially runs itself, you’re not having to make lots of phone calls or login to multiple websites each month to make payments. Put a little extra in there as a buffer to begin with, and from there you’re good to go.

It prevents you from wasting money

Money is hard earned but so easily spent, when you have a spare couple of pounds here and there it can quickly be spent on food, luxuries you don’t really need or just this and that. Chances are you find yourself wondering just where it’s gone as you have nothing to show for it.  Budgeting stops you from wasting money. You know exactly what each expense you need to cover costs, and any left over can be set aside.

It helps you save towards the things you want

Working forty hours a week is hard work. When it feels like you’re working just to pay bills and aren’t able to afford the things you want it can be really disheartening and even lead to burnout. But budgeting carefully allows you to save any free money in your budget- even if it’s just a little. Over time this can add up in a big way, and you’re able to afford that new gadget you want, a deposit for a home or car or a nice holiday. It can make everything seem worth it.

It helps you to maintain control of your life

In life, there are so many things that are out of our control. We can’t change the weather and we don’t know what tomorrow will bring, but one thing we can maintain control of is our budget. And doing so can give us security, stability and enable us to live the life we want. Being independent is important, and with your money managed well you have peace of mind that you’re able to stand on your own two feet, regardless of who comes and goes in your life, and whatever happens. Falling behind with money can leave you feeling anxious and out of control, particularly when debt collectors come calling. If you have found yourself in a position where this has happened, it’s important to seek advice. It could be a debt management plan, IVA debt advice or bankruptcy depending on how far things have gone.

Money certainly isn’t the be all and end all in life- but it IS important. It keeps a roof over our head, it gets the bills paid and puts food in our cupboards. Being able to manage it effectively is crucial, so work on getting your budget right.

This is a collaborative post.

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Lynn Beattie

Aka Mrs MummyPenny

Personal Finance Expert

I write about personal finance made simple, lifestyle choices that will save you time and money, as well as products and services that offer great value.

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