You’re to the point that you really need or want to pay-off debt. Maybe you’ve had or are having some sort of milestone event in your life. Maybe you are getting married, or having your first child. Or possibly something not as positive, like facing bankruptcy or foreclosure if you don’t change your ways. Whatever it is, debt pay-off is now a priority. But, where do you start? I say, you start with a budget. Here are five reasons why:
- A budget is a plan – If you think about it, there’s probably a good chance that the reason you have debt to pay-off might be because you didn’t have a plan. Debt often accumulates due to spur of the moment purchases, things that weren’t planned. Maybe you went out shopping for a few things, but came back with a trunk load of unplanned purchases. Maybe you even went with a friend to help her shop for a new car and you were the one who ended up buying one!! Having a budget helps you have a blueprint for your money. If you have a budget, you are much less apt to have your money make a plan for you, like 60 months of payments for $500 each! Either you or your money are going to come up with a spending strategy. Why not have it be you?
- A budget can teach you more responsibility – Spending time each month thinking about how you want to spend your money, including a firm policy to spend less than you make, writing your intentions down in the form of a budget and then making every effort to stick to it can help teach you more responsibility. Part of growing up should include becoming more responsible with your money. Isn’t it time to grow up?
- A budget can help you say “no” – Have you ever had a friend try to talk you into something that you knew you shouldn’t do? Of course! We all have! But, having a budget can actually help you to say “no”. It gives you an out, a place to fix blame. “Sorry, I can’t do that. I am on a budget.” Sounds like a diet for your money. And, it can work that way, too. Aren’t you ready to say “no”?
- A budget can give you a raise – One of the things that I found out when I finally caved to the fact that a budget is a good thing is that a budget can give you a raise. It’s amazing how money can just slip through your fingers when you don’t have a plan. But, when do have a plan, wow, it can make a huge difference. I found that, in reality, I gave myself a raise. And that convinced me that a budget is a very good thing! Aren’t you ready for a raise?
- A budget can help you see a way out – Just think about it: your budget has given you a strategy, helped you be more responsible, taught you to say “no” and given you a raise. That sounds like some positive things. And, if you were having trouble seeing a way out of what seemed like a black hole of debt, maybe now you can see light at the end of the tunnel. And, perhaps now you can get some breathing room between you and your creditors. Doesn’t it seem like a budget is a good thing?
Having and sticking to a budget is a real life-changer. And, I mean that in a good way. It gives you a plan for your money, teaches you more responsibility, helps you to say “no”, gives you a raise and might help you see a way out of something that you thought was impossible to overcome. Wow, that sounds quite amazing. Maybe it’s time to give a budget a chance.
Tell me what you think! I really want to get your feedback.