Why should I have a budget?
Budgeting helps you to have financial security. While you are still young, and potentially will have a very small income, it is still good practice to be able to budget from a young age, as it is an essential life skill to have. Here are some of the most important reasons that you should have a budget!
1. Helps you with your goals
You know that new phone you wanted? Or perhaps your friends are planning to see a movie together. Whatever you want to do that requires money can be hard to save up for, especially with money going towards transport and food, among other things, weekly. Budgeting helps you to see how much you are spending each week, and can tell you how long it will take, or how much money you can save by not spending it on things you can live without.
2. Helps you not to overspend
Have you ever over spend and ended up with a massive credit card bill? Well, we all do it, and it tends to make our lives a bit unhappier the next month or so as we work to pay off our debts.But with a budget, you can see how much you are earning compared to how you are spending, and you know how much money you have to spend for wants, or how much you have left to save.
3. You'll soon have a lot of money saved
One thing better than having a fresh paycheck with a hundred dollars to spend is up to a thousand dollars that you have saved, and this gives you more freedom as to what you want to buy. You can also buy more expensive items, and a bigger quantity of items to bring home with you.
4. It prepares you for emergencies
Imagine if you forgot your best friends birthday next week? Or what about breaking your phone? That's a lot of money, but where will it come from? If you have enough money saved up, you will be fine with that coming out of your savings. Emergencies tend to happen at the most inconvenient time, but with a budget, you will be fine.
5 You won't fall into debt when you are older
Budgeting can seem tricky, and time consuming, but once you get the hang of it, you will be glad you started. It is also a life skill you will carry into adulthood, and if you are able to budget at this age, you will be able to when you are older, and this will help you from falling into debt.
1. Helps you with your goals
You know that new phone you wanted? Or perhaps your friends are planning to see a movie together. Whatever you want to do that requires money can be hard to save up for, especially with money going towards transport and food, among other things, weekly. Budgeting helps you to see how much you are spending each week, and can tell you how long it will take, or how much money you can save by not spending it on things you can live without.
2. Helps you not to overspend
Have you ever over spend and ended up with a massive credit card bill? Well, we all do it, and it tends to make our lives a bit unhappier the next month or so as we work to pay off our debts.But with a budget, you can see how much you are earning compared to how you are spending, and you know how much money you have to spend for wants, or how much you have left to save.
3. You'll soon have a lot of money saved
One thing better than having a fresh paycheck with a hundred dollars to spend is up to a thousand dollars that you have saved, and this gives you more freedom as to what you want to buy. You can also buy more expensive items, and a bigger quantity of items to bring home with you.
4. It prepares you for emergencies
Imagine if you forgot your best friends birthday next week? Or what about breaking your phone? That's a lot of money, but where will it come from? If you have enough money saved up, you will be fine with that coming out of your savings. Emergencies tend to happen at the most inconvenient time, but with a budget, you will be fine.
5 You won't fall into debt when you are older
Budgeting can seem tricky, and time consuming, but once you get the hang of it, you will be glad you started. It is also a life skill you will carry into adulthood, and if you are able to budget at this age, you will be able to when you are older, and this will help you from falling into debt.