Before talking about what it’s like to live with a budget, let’s look at life without a budget.
You can let each dollar do its “own” thing. Have you ever heard someone say that as long as they have checks in their checkbook, they can write them? That is not taking into account what the balance may be or what checks may have been written. Folks also will write checks and keep a register but do not have a plan for their money. It may be possible to operate without a plan for a while and be OK, but it will catch up with you.
But this way of dealing with your money is characterized by:
In the back of your mind you are concerned about cutting it too close the day or two before the next payday. You don’t seem to have any money for big events or purchases. For instance, you would like to take a vacation and don’t seem to have the money or “maybe I can put it on one of my credit cards.” Christmas gift giving is a juggling act resulting in higher credit card balances. Oops, got a notice from the bank that you’ve overdrawn. You can’t believe the high fees that your bank charges. You are not sure how you are doing with your money.
Living with a budget is characterized by:
You know where my money is going each month. You are making progress toward money goals like saving a certain amount of money for vacation. You know that the six month car insurance bill will be covered by the money you have been saving each month. You have built a reserve in your checking account that any overdraft would be the bank’s fault. You can’t remember the last time you received an overdraft notice. At the checkout in the grocery store, you know that you have planned for the amount of money you are spending.
You are in control of each dollar that you receive.
You can decide what to eat and how much to pay for it. You can decide how much to put aside in savings. You allocate an amount for entertainment. You are the captain of your money.
Why budget? Living with a budget is a life that is more secure and hopeful! You are telling your money where to go! You are making progress with your goals. It is a life of peace of mind.
If you need help getting on a budget or sticking to a budget, read through the blog post here. If you would like to discuss your situation, email Russ to set a time to review.