10 Benefits of Budgeting Your Money So You Can Become Financially Free

August 14, 2018
20 Comments

Last Updated on January 4, 2021 by NandiNN

Tips For Budgeting Your Money

There are so many amazing benefits of budgeting your money!

They say ignorance is bliss, but it doesn’t hold true for your finances.

Being in the dark about your spending is one of the worst financial habits you can have. If you don’t smarten up, you could be in store for a nasty surprise.

Not convinced?

When I found myself pregnant and out of the job, I newly collapsed.

My bank account had nothing but $125 in it and my car payment of $163 was going to go through in a couple of days.

Trust me when I say I was depressed and stressed for over a week.

Thankfully my husband who was my partner at the time helped me out, and I went right to work.

The best step I did was to budget.

This meant reorganizing, reducing, and eliminating anything that was going to eat up my money.

And for this reason, I am a big believer in budgeting as it got me through a lot of sticky situations.

Guys, there is so much value in budgeting and if you can see that, you will become financially free sooner than you think.

Budgeting is the ultimate tool that will fully help you manage your money.

If you have horrible spending habits, having a budget is the best way to manage your personal finances.

What Is The Main Purpose of A Budget?

The main purpose of a great budget is basically for you to have an overview of what your finances look like.

You will have a better understanding of what money is coming in and what is going out.

This will ensure you are not spending more money than you should be spending.

By knowing exactly what your cash flow is, you will be in a better position to make good money decisions. That is why starting a budget is crucial.

Before we get into the different benefits of budgeting your money, I want you to understand that you are here today because you want to work on an overall financial situation.

This is just the first step to getting it right.

If you can avoid living paycheck to paycheck by better managing your money, then it’s time to do just that.

If your goal is to become financially free and learn more about how to successfully make sense of your income, join our 30 Day Money Challenge where we will share actionable tips you can use to succeed with money.

You can go ahead and sign up right here for the full details.

What is the value of budgeting your finances?

Before we get started on the benefits of budgeting your money, we did want you to follow us on Facebook for more awesome ideas on saving or making more money. You can also follow us on Instagram for more tips.

We also wanted to take the opportunity to let you know that we use Affiliate links on some of our blog posts. This means that we could make a commission if you click on an affiliate link and purchase something.

What are the advantages and disadvantages of budgeting?

If you are ready to take control over your financials then it’s definitely time you think about starting a budget.

It’s the best way to understand where you stand financially, you can take control of any debt you have and you can start a proper saving plan.

With the right budgeting plan, you can be well on your way to financial freedom.

If on the other hand, you neglect to properly manage your income, you can find yourself in deep debt faster than you think.

Digging yourself out of that debt can be hard and stressful for lots of people.

That is why it’s best to face things head-on rather than to ignore them.

Today I want to really take the time to answer the following questions my readers had:

What are some benefits of budgeting?
How should a beginner budget?
And who should budget?

Setting up a budget for the first time is one task many people avoid for the longest time as they do not truly understand it’s purpose.

Lucky for you, we will be addressing that below.

What are the benefits of budgeting your money?

1. You Have Control Over Your Money

One of the benefits of budgeting your money is that you can control your money instead of having it control you as most people do.

This means you have the ultimate say of how and when you spend that cash.

If you can have the final say about how you spend your money, you will have so much money left over to save or put towards something important such as an emergency fund.

When you get paid, you can say exactly what goes to pay what, and anything leftover can be put in a saving instead of spending it on that fancy dress or going on that expensive vacation.

By saying no to things that are not in your budget, you can set that money aside for a rainy day or pay off that debt that is lingering.

2. Budgeting Will Allow You To Meet Your Financial Goals

With a strict or working budget, you can easily meet any financial goals you set for yourself.

When you take the time to sit down and write out your financial goals, you have ultimately taken the steps to become a better you financially.

In order for it to work, you need to also create a budget that works on meeting those goals.

3 years ago, one of my financial goals was to make $5000 a month from home as an entrepreneur.

That goal became a reality after I made the decision to start a blog.

I made a plan on how I was going to achieve that goal and made the changes in my budget to get there.

In my very first month, I made $84 and I was even more determined to grow that income.

I worked my butt off to get to where I am today. Starting a blog is not cheap, but with a good budget and my Financial Goal Planner, I made it all happen.

I can honestly say that those are the many benefits of budgeting your money!

It allows you to work on your goals.

3. You Can Stop Living Paycheck to Paycheck

According to CBS News’ Money Watch, 8 out of 10 Americans live paycheck to paycheck.

These stats come from a CareerBuilder survey that polled 3,500 full-time employees and 2,400 hiring and human resource managers in 2017.

This is really scary.

Their findings show most respondents are in a fragile financial situation, even if they’re taking home 6-digit incomes.

Don’t let these stats normalize this living situation.

Though most Americans do it, living paycheck to paycheck is an impulsive way to manage your money.

One missed paycheck could spell be the ultimate disaster for your finances. If this is the case, then it’s time you think about starting a budget.

It will ease your financial burden as you can really control where your money is going.

I highly recommend that those living on a tight budget, definitely consider starting a budget today!

4. You trace where your money is going easily with a budget

Speaking of living on a tight budget, it is really important that track your spending.

You work at least 40 hours a week — sometimes more — and some people hold more than two jobs!

So sometimes, it may not be that you aren’t making money, it just may be the simple fact of where your money is going after each paycheck.

You may simply have horrible spending habits, so you can’t say for certain where your money is going each month.

What you do know is that your wallet and bank accounts are empty, and you have nothing worthwhile to show for your reckless spending.

Starting a budget will help you determine where all your money is going month to month.

If cash slips through your fingers like sand, and you swipe through credit like it’s your job, it’s time you consider starting a budget today.

With a good budget, you will soon have a better handle on your income.

In fact, this spending plan will help you track each dollar, so you always know how you are spending your money.

5. Budgeting Will Help You Save

Regardless of your age, needs, or wants, savings are an essential part of your finances.

They can help you do something as simple as buying a new washing machine to something as complicated as preparing for your retirement.

This is the most important reason for starting a budget and it is definitely one of the many benefits of managing your money in this day and age.

Living without savings will be a minor inconvenience at first.

You won’t be able to cover short-term bills or repairs on your own.

Though annoying, these bills are usually simple to cover when you know you can just put it on a credit card or borrow money from family or friends.

That means you usually have a quick solution as soon as an emergency arises.

Even with short-term solutions, it is important you look into fixing your financial life by starting a budget plan.

However, over time, your lack of savings will affect your finances in greater ways than you can imagine.

Without savings, you won’t be able to take a long vacation or contribute to your emergency fund which is really important.

If you don’t have any savings to your name, it’s time you use a budget to help get started.

We can’t stress enough why starting a budget is important in this day and age.

And although setting up a budget for the first time can seem scary, it is essential in helping you plan better future money wise.

Grab my money-saving challenges today to start saving money right away.

The benefit of budgeting your money is that it will finally allow you to save even the little money you may have.

We have flexible challenges that you can easily use to help you save some serious money in 30 days or over the year (52 weeks).

Whether you are looking to save $100 or $10, 000, we have money-saving templates you can use to reach your goals faster and easier!

Grab it now!

They are over 8 amazing challenges:

Save $100
Save $500
Save $1000
Save $3000
Save $5000
Save $10000
Save $15000
Save $20000

Grab the full bundle right here!

6. You Will Have Money To Pay For Bills

It’s normal for you to hate opening bills.

Personally, I hate opening bills, in fact, once upon a time, I had a purse full of unopened bills that I simply shredded when it became too stressful to look at.

Yep!

It was that bad.

Very few people enjoy being reminded they owe money.

However, if you avoid your mailbox for fear of finding a bill from your credit card company, your cowardly ways suggest you have a problem.

Yes, I can admit.

I had a very serious problem.

Another benefit of budgeting your money today is that it will give you the peace of mind you need.

When you are spending within your limits, you shouldn’t be afraid to open those bills to face what you owe.

It’s a completely different story when you’re overextending yourself; bills reveal just how much you owe compared to how little cash you have to pay them off.

In which case, you need a budget to help you take control of your finances. And starting a budget right away will help you in the long run.

7. Budgeting Allows You To See The Bigger Picture

Don’t assume you are in the clear if most of these situations don’t resonate with you.

If just one of these signs on this list reflects your financial habits, this alone is proof that you need to reconsider how you manage your money and that starting a budget should be your next step.

A budget is just a tool for the job.

To make it, you have to take stock of every dollar coming in and out of your hands in such a way that forces you to face your financial situation as a spendthrift.

Setting up a budget for the first time will open your eyes to where your money is coming from and where it is going.

Despite what financial guru, Dave Bach, claims, you can’t always blame a bad financial situation on the Latte factor.

Bach’s money-saving strategy points the finger at small purchases made throughout your day, claiming they’re the reason why you come home with no cash in your wallet.

While this is true of some people’s habits, it doesn’t work for those who have no small daily purchases to eliminate.

If your budget shows you how little you make compared to your fixed costs, it suggests you need to increase your income with a new job or side hustle.

11 Unusual and Fun Ways to Make Money Fast This Year

8. A Budgeting Will Allow You To Pay Deft Quickly

Reducing debt is a top priority for many of us.

I mean, paying every dollar of your hard-earned cash to debt can be heartbreaking.

The interest rates that you pay on your debt is often higher than the interest rates you can earn from a high-interest savings account or even the stock market.

Interest sucks as it looks like you are given someone else free money.

By focusing your efforts on debt repayment, you will be lowering your credit utilization and improving your credit score.

And this can easily be achieved by following a strict budget.

Being in debt is extremely stressful, so do everything you can to lower and eliminate your debt.

Read up more on how I managed to pay off debt fast even with little money.

Don’t forget to join our 30 Day Money Challenge where we will share actionable tips you can use to succeed with money.

9. Budgeting Will Get Your Organized

Learning how to organize your finances will help you feel less stressed.

As a person that was diagnosed with chronic blood pressure at 30, I knew I could not let anything in my life stress me out.

I made the conscious decision to organize my finances!

By tackling this huge task, I found that my lifestyle started to make better sense and I was less stressed out every month.

Organizing my finances meant that I was on top of my bills, I had money left over month after month (no more living paycheck to paycheck) and I knew exactly where my money was going each time.

Having a budget will make it extremely easy to organize your money each month.

This is one of the many benefits of budgeting your money, you are in control and you are organized each month.

Knowing exactly how much is in your account each month is a great thing.

10. Better Lifestyle

When you budget and you know how to manage your money, your lifestyle will improve significantly.

A few things that got better for me after 6 months of sticking to a budget were:

I found that I slept better
My stress level was more controlled
I was never scared of opening bills
I had money left in my account each month
And I could plan to splurge ahead of time

Once things start coming together, you will feel so much better and you can really start to enjoy your life.

Get the necessary help if you are just too deep in.

You will be better off getting help than keep living in denial about your money troubles.

This is the year to finally get your finances in order.

Grab our 30 Day Money Challenge where we will share actionable tips you can use to succeed with money.

And there you have it, the ultimate benefits of budgeting your money and how to get started!

I hope you under why starting a budget is essential and all the different ways to set up a budget the right way for the first time!

You won’t know where you fall on the spectrum until you have taken the time to create a working budget!

I suggest taking the time one weeknight or weekend to look at your finances.

Starting a budget is the only way you can take full control of your money. If you don’t know how to make one, don’t let that stop you.

There is a huge resource of information available at your fingertips online.

Just use Google to find more information about starting a budget and how to create one. It will bring up some of the best tips available, including hacks, and guides to help you budget better.

You can also visit websites like NerdWallet and Wisebread to help you get started.

What’s important isn’t how you make your budget. What’s important is that you have one. Setting up a budget for the first time can be daunting but starting a budget will be the best decision you would have ever made.

Whether you create one with the help of online guides or a money management app, it amounts to the same thing.

A budget is a light in the dark, shining awareness of your financial ignorance. Once you’re aware of how you spend your money, you will have a better chance of taking control of your money.

Be sure to download your FREE monthly budget template worksheets (download this budget template) and then work on your saving goals.

If you know of more benefits of budgeting your money, please share more with us below.

I would really enjoy hearing your thoughts about this.

Go here for more money-saving tips.

Read this next:

If you enjoyed our blog we would like to have you join our email list and receive weekly money-making tips, you can join now! Don’t forget to join our Private Facebook page. The page is created to share your work, pitch your services, and learn from other experienced bloggers!

***We would like to note that this post and most posts on our blog may contain affiliate links. This means that if you purchase something that has an affiliate link, we will get a commission from it. Not all items recommended on our site are affiliate links. We only recommend items that we have used and tried. These items have brought us much success and we highly recommend them to you in order to be successful. Thank you for your trust!