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Budgeting – Why is a budget important?

I did a survey asking people: how do you normally budget?

The options to answer were:

  1. In my head
  2. Pen and paper
  3. Using a spreadsheet
  4. On Monzo

70% of the answers were (1) in your head

Doing it in your head is great for an overview of a budget but if you have got big financial goals that you want to hit, then you are going to have to really get into some more detail than just doing it in your head. 

anna kendrick mind blown GIF

So why is a budget so important?

We live in a world where we need money for things…

We need money to survive, money for food and rent or mortgages, to buy things, to get around. It is just how it is.

There are the necessities (food, water, shelter). Then there are the luxuries (clothes you want to buy, holidays you want to take). Everybody wants to be able to live a life where you can afford both.

But to be able to do that you need to know you are not living outside of your means.

 

You CAN have it all (if you budget properly)

A lot of the UK are in consumer debt, because they live outside of their means.

Partly it is not our fault, we are being marketed-to to buy products constantly. Billboards, radio ad’, adverts on our phone. It is always in your face.

We weren’t taught in school how to budget our money and it is easy to want to just spend it.

It is easy to ignore the fact that maybe you can’t afford it. You just thin “ah stuff it, ill put it on the credit card”. It is so easily done.

But it is really important to learn to live within your means.

If you set a budget, it means that you can pay for necessities, you can pay for luxuries and you can prepare for the future. (to save for a house, or prepare for a baby, or to go travelling).

A budget helps you understand your money.

I bet even millionaires have a budget.

 

Happy budgeting

Laura xxx

 

Author: Laura Moore

I am a 26-year-old living in London and currently learning how to live my absolute best life whilst still being financially stable… everyone’s dream right? That is the journey I am on and I learn something new every day, so I am documenting and sharing my experience. I want to show you how you can have fun and still have money, at the same time. It doesn’t have to be one or the other. My mission is to help you become financially free. After making a very last minute to decision to go travelling in 2015, with the money I had saved ready for Drama school, it was then that I realised the freedom that money can give you. I want to demystify money and help you all feel empowered by your finances. Talking about all aspects of saving, budgeting, clearing debt, investing (and many more), I am here to help you take control of your money.  

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