No one likes budgeting - not really. The extent of someone’s like towards budgeting would probably only go as far as appreciating the benefits of budgeting. But the thought of carefully planning your monthly expenses, tracking everything that you spend down to the last rupee and limiting yourself from buying whatever you want, isn’t exciting. However, there is no denying that budgeting is something done by many millions of people around the world, undivided by race, religion, gender or nationality. That’s simply because budgeting works. The sad reality is that, unless you’re a millionaire, you’re rarely going to have enough money to live comfortably each month while buying all the things that you want to.
If you have not started budgeting yet and are skeptical about whether it would work for you, here are some surprising benefits of budgeting that maybe you hadn’t known about:
Suprising Benefits of Budgeting
Control Your Money
Something a lot of people haven’t realised is that all too often, money ends up controlling how we live our lives when it should be the other way around. You plan your life around your salary dates, deprive yourself of luxuries to make ends meet and slave away at a job to make just enough money to survive. That’s no way to live. By putting a bit of time and effort into budgeting mechanisms, you can plan your entire life to an extent that you are the one who decides what your money does for you. Your salary date cannot affect your plans if you’ve planned accordingly; you can afford luxury items if you’ve saved up ahead of time; you can make your paycheck support your dreams if you allocate the money properly. Regain total control over your finances by budgeting.
Most people think budgeting is just reducing your expenses, but it’s so much more than that. However, budgeting can end up saving you so much money by opening your eyes to where exactly your money has been going the past few months. Budgeting starts with income/expense tracking which, if you hadn’t already been doing, would show you your main sources of income and your main expense areas - which might shock you. If you had convinced yourself that ordering food in a few times a week couldn’t possibly be too draining on your wallet, your expense tracker will show you that restaurants were actually your main source of expense, with a monthly bill of around ten thousand rupees or more. Budgeting will also help you identify any financial leaks such as unwanted subscriptions and fees by telecommunication service providers and your bank.
Stretch Your Paycheck
The reality is that most of us are living paycheck to paycheck, often needing to resort to payday loans in order to make ends meet. By budgeting, you are able to allocate your money wherever it needs to go throughout the entire month meaning you won’t be penniless just a few days before your salary date. Sure, you might need to cut down on certain things and forego little luxuries in order to do so, but isn’t the thought of being completely debt-free and independent tempting? If you are able to make your current paycheck cover all your expenses, any additional income will be an added bonus and not a lifesaver to cling onto.
No Nasty Surprises
Budgeting isn’t simply about tracking your expenses, cutting costs and saving money - a big part of budgeting is also creating an emergency fund. An emergency fund is separate from your savings pool and this is the fund you need to dip into time and again when you’re in any situation which requires more money than you have in hand. Ideally, your savings should never be touched. If you have a well-stocked emergency fund, an unexpected repair job or medical bill will not end up wiping out your entire savings leaving you with nothing to show for your hard work over the months/years. An emergency fund is a crucial aspect of budgeting as no amount of planning can control the external environment; there will always be unpredictable expenses arising and an emergency fund will prevent those from throwing a wrench in your personal finance plans.
Indulge in Treats
And finally, the most surprising benefit of budgeting - indulgence! When planning your expenses and saving your money, remember to set aside a small amount each month to treat yourself. It might mean that you would need to cut some corners during the month but these little luxuries will make it all worthwhile. If you are able to save up for a few months, you can even manage to afford something like your dream phone or that designer bag that you’ve always dreamed about.
Sometimes, budgeting alone might not be enough to compensate for a meagre paycheck as well as extremely high expenses which you cannot possibly reduce (family commitments, medical bills etc.). While budgeting can help reduce the burden, it works best with income supplements such as side hustles or part time jobs. Even though not many people like the idea of budgeting, budgeting has the potential to help each and every one of us not only save money but generally live a more stress-free life.
Incase budgeting does not help you reach your goals, and you are still unable to control your expenses, getting a payday loan would be the best alternative right now in the market. You can easily get yourself a fast loan via OnCredit.lk if you are looking for a quick personal loan.