Last Updated February 2022 by Crystallace
Can I brag for a minute? One thing I got better at last year was maintaining a household budget and because I did I reaped the household budget benefits. I know I’m a little late to the party but let me explain.
Once I graduated from law school, I was working odd jobs to make ends meet. In 2020, I decided enough was enough. I just felt like I spent too much and I wanted to keep better track of my money because every time I turned around I was broke.
I know what you’re thinking… a broke lawyer? Yeah girl, check out this video if you think I’m lying.
Anyways, my experience has taught me that having a household budget benefits you in so many ways.
Household budgeting is one of the simplest ways to start being in charge of your money. One of the biggest lessons I, like most people learn, is that we don’t have an income problem, we have a spending problem.
While I’m not going to get into the steps of how to plan a household budget today, which I can if you want me to, just let me know in the comments.
I am going to share how having a household budget benefits you.
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Starting a budget is one of the first tasks everyone should do once they leave home to live without parents. Whether you’re single, married, living alone, or living with roommates having a household budget is so important. But I also understand that it’s not always possible so the sooner you can, the better. Why? because of these…
4 Ways Having a Household Budget Benefits You
1. You Become 100% in Control
I started this article by telling you that most people have a spending problem.
Having a spending problem is the result of letting the money control you, rather than you controlling the money.
When you opt to create and abide by a household budget, you become 100% in control of money. This is a fabulous feeling and can significantly boost your self-confidence.
Having a household budget benefits you by reducing your financial stress and anxiety. Because you’ll know how you’re planning to pay the bills and what’s left to put in savings.
You’ll be able to see more about your spending habits and plan for unexpected expenses.
This reduces the worry most adults have when it comes to money because you’ll have the financial plans laid out in a simple to read layout that calms your fears.
Trust me, having a household budget benefits you by allowing you to sleep better at night.
2. You Can Track Your Financial Goals
A household budget allows you to set and track financial goals.
Just think about how you’ll feel when the end of a month arrives and you have a little extra cash to put into your savings account.
This is something many adults start to see as they learn to control money by creating a household budget.
Depending on how many expenses you have and what type of spending habits you’ve grown accustomed to, your household budget will start to show a positive number within three months.
Creating small goals, such as being able to save a specific amount within three months of saving to buy something you’ve wanted to purchase, will help keep you on track with your budget.
This is specifically how I save for designer handbags (outside of my main savings of course). I make a specific target amount and save for it. Once I spend it, I rinse and repeat. For other tips on how I earn extra cash to feed my handbag addiction, check out this video.
Every person thrives when they have specific goals they’re working towards.
3. You Become Self-Aware
It’s amazing what you learn about your spending habits when you create a household budget.
You’ll start to see a pattern of behavior when it comes to finances.
You may notice that the coffee you buy every day or a few times a week is costing you more than you realize. You might find that your grocery costs could be lower if you adjusted how you shop for groceries.
There are many things you’ll learn about yourself when you have a household budget. This means you get to work on personal growth by adjusting your money habits to be more in control of the money you earn.
One time for growth!
4. It Will Be Easier For You To Have an Emergency Fund
Last but certainly not least, having a household budget benefits you by helping you create an emergency fund. Because now that you have an overall view of what your income and expenses are, you can accurately predict how much money to save each week or month towards your emergency fund.
Every person should have at least one to three months of bills inside a savings account for emergency purposes.
This fund can be used when something goes wrong, like emergency car expenses or worst case scenario, a job loss. Having a little cushion in the savings that’s set aside for an emergency fund will help reduce that anxiety of what if something bad happens and encourage you to live your best life.
These are just a few of the many ways having a household budget benefits you
I could go on and on but really,
You’ll soon find that managing your money helps you feel more relaxed, confident, and ready to tackle any financial issue with ease when it arrives.
Are you thinking about sticking to a household budget? Let me know in the comments?