Why You Need a Budget That Works
Welcome to How to Create a Budgeting Tool That Works. What is it that brought you here? There are many reasons that people choose to start a budget. Before actually embarking on the activity of budgeting, it is important to have a good grasp on your why. Your "why" is the motivation that will keep you on track with maintaining a budget. Therefore, it is very important to identify your "why" from the get-go. Once you have a clear "why", you will have the drive you need to continue on with the rest of the course, and be successful in creating a budget that works.
There are many reasons why you may want to master your budget. Here are some for you to consider.
· To free up your time. You may feel as if work is taking up all of your time. You may want to cut down on work or change jobs completely but you can’t do so because there are bills that need to be paid. A lifestyle needs to be supported. Getting your budget in order may be just want you need to decrease your spending, thus allowing you to take that part-time job or cut down on your work hours. Some people even want to become so financially savvy that they can pursue complete financial independence and retire early!
· To relieve stress. Having a shortage of money can be very stressful. However, if you budget correctly, you should never run into that situation. Mastering your budget gives you more flexibility and allows you to be better positioned to deal with unexpected expenses.
· To have more freedom. The more financially secure you feel, the more freedom you will have when making life decisions such as changing jobs, quitting work, traveling the world, starting a business, starting a family, and more. When money is tight, these things may seem very risky. But when you have a good grasp on your budget, you can predict how much freedom you have in pursuing your passions. For example, if your dream is to take time off and travel the world in 2020, you can definitely make that dream happen by planning ahead and using your budgeting skills to prepare yourself for that.
· To support yourself and your loved ones better. For me, this was MY “why”. I was graduating from dental school with over half a million dollars in student debt, and was also about to get married. I knew what a burden I was choosing to bring into our marriage. He didn’t mind it, but I did. I was propelled forward with this drive to release us from this student debt, so that we can be free to pursue the lives we want to lead without being tied to working in certain fields to support large loan payments. It isn’t fair that the person I most love would be affected by debt because of the career I chose to pursue. So I embarked on a journey to get our finances in tip top shape, and we have mastered our budget so well that what people once told us would be impossible to do is being done! They said we wouldn’t be able to pay off our debt in under ten years considering the salary we would be making. Well, we are on track for eight years, and it all started with mastering our budget!