To kick off Money Glee Monday's, let's look at a big topic for most people or a non event for others, the budget.
To most of you, the "B word" in personal finance is one that will induce panic, fear, anxiety or even send you to sleep :)
Why is a budget important?
Some financial experts mention that it is not about clipping coupons while others say it's not about how much you earn, it's about how much you spend. Both of these viewpoints among 1000's of others out there have their merit however what this demonstrates is that budgeting and personal finance is exactly that, personal. A budget is important though as it gives you insight into where you are spending. For Money Glee, a budget is not about creating shame, guilt or being criticised from others, it's about where you spend money. This can then help you to evaluate if where you're spending your money matches your values.
Top 5 reasons budgeting is important
- It helps to evaluate where your financial values lie
- What gets measured gets better
- It will hold you accountable
- Your money can be assigned to goals that are important to you
- Enables you to automate your finances and spend time on things you enjoy doing
Not sure about the Money Gleer's out there but we enjoy having the flexibility to spend money on what we enjoy while still building for the future. Ultimate it will give you a choice on the direction you want to take rather than hitching a ride on someone else's financial priorities
While it is not rocket science and is unlikely to make you a multi-millionaire overnight (if you end up doing this let us know ha) the budget will help you get clear.
They say that the first step to recovery in anything is acknowledgement and with your finances, a budget is a great diagnostic tool.
This will be a short and sharp post today, if you'd like more information on what you could include in a budget or how to budget let us know in the comments.
While we've presented some thoughts and ideas on budgeting here we'd love to know how you budget? Where are you doing well and what you feel you can do better?
Let us know if there's any general money related topics you'd like to see and we will consider these for future posts.
Get out there and find your money glee! :)