Freedom of The Budgeting

The title of this article is deliberately deceptive. This is not the arguments against the budget. Contrary to what you may have heard, budgeting is a liberating experience. Create a budget and insist that it can be a release of your financial life experience. I  have seen this happen in my own life and in a few friends live.

Just so we’re all on the same page, let me define what I term mean, “budget”. A budget is simply a plan for your money. to plan for your money, you know where your money comes from and where it goes. The budgeting is a way to control where your money goes. It doesn’t mean you can’t eat out every night, it simply means you are eating out every night and was planning money you have available would know to do.

I’ve never seen anyone regret budgeting once they get the hang of it.  I’ve helped many people get started with a budget, and they all say the same types of things : “It’s great knowing I will have money at the end of the month for all my bills,” “My wife and I don’t fight over money any more,” and I actually spend more on recreation now that I’m not nervous about paying my bills.”

Here are some of the freedoms provided by a good budget:

• Freedom in your marriage. Money is one of the leading causes of divorce in the US.  It stands to reason that even when it doesn’t lead to divorce, money can still be a significant cause of stress in a marriage.  One spouse may spend a lot of money, while the other is working hard to find money to pay the bills.  More likely than not, they both think the main problem is with their spouse, not themselves.  Creating a budget together and sticking to it together can relieve the stress.  You both have defined goals, and both can work to meet those goals.
• Freedom to sleep. A budget lets you know how much money is coming in, and how much money is going out.  You should figure out your bills and other expenses, and reserve enough money to pay them.  Money left over is yours to spend (or save) how you want.  No more sleepless nights wondering if you have enough money in the bank to pay your bills for the month.  You know that you do, or you know that you don’t.  If you discover that you don’t have enough money to pay the bills, you have the information necessary to take action and resolve the problem by cutting expenses and trimming back.
• Freedom to give. One thing I’ve enjoyed most about budgeting is that I can budget a certain amount to give.  Without a budget, I would be a hoarder.  I would be afraid that I couldn’t pay the bills, so I wouldn’t spend or give anything away.  With a budget, I know how much I can give away without hurting my family’s financial stability.
• Freedom to remember. It’s amazing how money can slip through your fingers without you realizing it.  This happens to me all the time if I carry cash in my wallet.  It’s gone before I know it, and looking back I have a hard time remembering how it was spent.  Keeping track of your spending helps you see where you spend your paycheck.
• Freedom to have fun. As I mentioned in the introduction, creating a budget doesn’t mean you have to stop spending money on fun.  If you want to eat out every night, budget for it.  You’ll know if it’s going to hinder your ability to pay the bills.  If you can afford it, and you budget for it, then you can eat out every night without feeling guilty when you pay the check.

Shining light into the dark corners of your financial life can be a daunting experience. Enough to allow you the truth, might consider holding on your checking account in the dark. But when you honestly evaluate your financial situation and establish a budget you ‘, ll see what I did, the financial freedom and peace of mind can follow.

Filed Under: Budgeting

Tags: Budgeting, financial plan, Freedom from Budgeting