why you need a monthly written budget
For starters, writing a monthly budget plan before the start of every month is one of the best decisions you can make to start transforming your finances.
Budgeting is both an art and science. When we budget our dollars, we assign a specific destination to them. We prepare a blueprint for our expected expenses in the coming month.
A budget is essentially a plan for how we want to spend our money. With a written budget, we set up boundaries for ourselves. It may sound paradoxical but making these boundaries is the key to attaining long-lasting financial freedom.
Every month will demand a different budget from us, based on the activities that we are about to participate in and our priorities for that month.
A well-planned budget is essentially streamlined to achieve our financial goals. Budgeting can help us in directing our money and focus towards important goals such as paying off debt, building an emergency fund or saving for the down payment of a house.
As we start budgeting, we dial in back to our priorities and spend only on the essentials. We start understanding what categories we need to cut off money from so that we can divert our funds for better use.
After budgeting for a while, you will begin to realize that you are not squandering money as you used to and have become better with it.
With time, our spending becomes intentional and we are able to eliminate our impulsive buying behaviors and all the guilt that comes with it.
As John Maxwell said, “A budget is telling your money where to go instead of wondering where it went.” We can lead our money and become a master of it.
Not only do we need to make a budget but also commit to it and keep referring to it periodically as we spend our money over the course of a month.
A budget equips us to make a detailed analysis of our income and expenses, and helps us keep track of our dollars. Keep in mind that it may take a few months for you to master budgeting and you may fail multiple times in the beginning. But with every month, you will become more aware and conscious of our spending and get more skilled at leading your money.
Budgeting is totally worth it. I would encourage you to sit down and make your first monthly budget on a piece of paper or on an app such as EveryDollar before the beginning of next month — it will be a game-changer for you!
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