Budgeting and budgets have gotten a bad reputation. Say the word “budget” and many people think of being restricted or controlled. Unfortunately, this misunderstanding keeps many people from budgeting. Yet, a well-developed and appropriate budget actually provides freedom. Say what? I’m serious; a proper budget actually gives you freedom! Here are four ways how a budget is actually freeing:
A Budget is the Freedom to Spend
Yep, that’s right, a budget is the freedom to spend. Have you ever bought something and then realized you should have saved that money for something else? That leaves a feeling a guilt or embarrassment. A budget is the freedom to spend without guilt.
Having a budget also gives you the freedom to spend on what is important to you. YOU are the one that sets your budget. YOU get to decide how to prioritize your money. YOU can decide what deserves your hard-earned money.
The point of a budget is to be intentional with money. I don’t care what you spend your money on, as long as you are doing it on purpose!
A Budget is the Freedom from Fear
We fear what we don’t know or understand. Too many people fear their money because they don’t know where it goes. They know it comes in and goes out. And more often than not, they have nothing to show for it! This lack of knowledge causes fear and anxiety. Once you have a successful budget and are sticking to it, you know where every dollar is going and the fear goes away.
A Budget is the Way Out of Debt
Debt is truly the opposite of freedom. With debt you are locked into paying your debtor. The payments decrease your income that could be used for other goals, dreams, or growth. Maybe you’d like to pay cash for a dream vacation. Perhaps you want to purchase a home. Or maybe you want to be able to help someone in need. With debt all of these are nearly impossible.
Sticking to a detailed budget is the quickest way out of debt and on to freeing up your money for other uses. Build a budget, ditch the debt, and free up that income!
A Budget Can Help Build Wealth
Most people that build a detailed budget feel like they got a raise. This should be reason enough to want a budget. They realize they’ve been wasting money on silly things. Maybe they’ve spent a ridiculous amount on eating out or their morning coffee runs. Perhaps makeup, clothing, pets, or video games have cost them their future.
We all know that we should be saving for retirement, college for our children, and other large purchases or events. With a detailed budget you can actually allocate money to save for such things. Saving money equals building wealth. Wealth gives you freedom and options.