Budgets often have a bad reputation among us all. We see them as something that makes our life harder and keeps us from having fun in our own lives. But the truth is a budget is simply a tool and it depends on how the tool is used as to what it does. A budget can be a powerful tool to help you achieve financial independence. The most important part is for you to decide what you really want. Once you do that, you can use the budget to help you get there. So let’s get started showing you exactly how that works.
1. Budgets help you understand your money
2. Budgets help you reach your own goals
3. Budgets tell you EXACTLY where your money is going
Once you have setup all the expenses you have in your budget, you can see where things are going. This is similar to understanding your money but it gives you a deeper picture. It will tell you those areas in your life where your money is like a black hole and other places that you may have been ignoring. This is the most powerful part of using budgets. You will know what areas you have been wasting money on. Its easy to forget those little things over the course of one month that seem to eat every peso from our wallets. How many Starbucks did I have this month? Wow, I don’t remember that many! I ate out HOW MANY times? You get the idea.
4. Having a budget will give you security
Once you know where your money is going you will have the peace of mind that you are meeting your obligations and also working to achieve your goals. That makes using budgets very helpful all by itself. Peace of mind is worth a lot.
Budgets don’t have to be restrictive to you. You can use them as a tool to help you achieve your own individual goals and achieve financial independence.Its up to you how you will use the tool and how important your own goals are for you.
We recommend using the online budget tool Mint.com. It has apps for both IOS and Android so that you can always have access to where your money is going.