Top 12 Reasons to Create And Use a Budget

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1. Budgets are used as a baseline, analysis-tool and roadmap. It is a useful tool and guide. It tells you whether you are headed in the direction you want to be headed in financially. It helps you to move from spending to saving and good fiscal balance, management and responsibility. You may have goals and dreams, but if you do not set up guidelines for reaching them and you do not measure your progress, you may end up going so far in the wrong direction you can never make it back. Can you imagine the government or a major corporation operating without a
budget? No and neither should you.

2. It is often described and justified as an empowering enabler. A budget lets you control
your money instead of your money controlling you.

3. A budget is a realistic estimate and true reflection of current circumstance and means, a type of financial situation-analysis that will tell you if you are living within your means.
Before the widespread use of credit cards, you could tell if you were living within your means because you had money left over after paying all your bills.

4. A budget can help you meet your savings goals. It includes a mechanism for setting aside money for savings and investments.

5. Following a realistic budget frees up spare cash so you can use your money on the things that really matter to you instead of frittering it away on things you do not even remember buying.

6. A budget helps your entire family focus on common goals. It is unifying families in
mutual purpose and effort, working together towards a successful outcome and reward.

7. A budget helps you prepare for emergencies or large or unanticipated expenses that
might otherwise knock you for a loop financially.

8. A budget can improve your marriage. A good budget is not just a spending plan, it is a
communication tool. Done right, a budget can bring the two of you closer together as you
identify and work towards common goals and reduce arguments about money.

9. A budget reveals areas where you are spending too much money, so you can refocus on your most important goals.

10. A budget can keep you out of debt or help you get out of debt.

11. A budget can create extra money for you and your family through proper planning.

12. A budget will help you sleep better at night because you won’t lie awake worrying about how you are going to make ends meet.


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