Learning to live on a budget can help you to accomplish your goals much faster. A budget is designed to help you spend your money more efficiently, instead of spending too much money at the coffee shop (you know those $5 cups of coffee day after day) or going out to eat for breakfast, lunch and dinner, 7 days a week.
It’s amazing how fast things add up! A more efficient way to spend this money would be toward your goals that you thought could only be dreams, instead of reality.
I’m here to tell you that you can accomplish ALL of your goals with the right plan. So, what can a budget help you accomplish?
1) Help pay down debt faster
Do you have credit card debt or student loans that you think are going to take forever to pay off? It’s amazing how quickly they can be paid off if you make extra payments each month toward the debt.
Trimming the fat in other areas of your spending could give you the extra money you have been looking for.
2) Build Emergency Fund
Has your car ever broken down and you didn’t have the cash to repair it? So, how were you able to fix it? Did you pay it with a credit card and now increase your debt?
Having an emergency fund is important to have for scenarios such as this. How good would it feel to pay for the car repair with cash and not borrowed funds that you will have to pay interest on?
3) Save for downpayment for a house
Have you been dreaming of owning your own home but don’t have money for a downpayment?
Budgeting can help solve this problem. Instead of spending extra money consuming, you make the decision to consciously consume and have money left over at the end of the month to put in the house downpayment fund!
4) Save for retirement or even retire early
Do you want to start saving for retirement, but don’t have any extra money? It might be time to review the monthly income and expenses. Identify how much money is coming in and how much is going out.
Also, where is the money going? Even an extra $100 per month set aside for retirement can add up quickly. Is your goal to retire early? It can be possible with the right budget in place.
Is there some exotic location that you have always dreamed of going to, but couldn’t afford it? You can with the proper planning and allowing yourself enough time to save up for it.
Have you ever been to Hawaii? Now is the time to start setting money aside to make it happen!
Why do you budget? What has it helped you accomplish?