Maybe you have been thinking about starting a budget and you keep tossing the idea around. You think a budget may help you, but you are concerned that budgeting just may not be for you. There are signs that indicate that you should create a budget.
Money is one of those things that people are very touchy about. If you look at marriages, most fights occur because of differences in regards to money. In our marriage, we used to fight about money. My husband is the natural saver and I am the spender. I have no problem going to stores and spending money on clothes, stuff for the house or food.
We started our budget a little over a year and a half ago. We started to really get serious about where our money was going and were able to pay off $78,000 of debt in 17 months all because we used a budget. We realized that we needed to hold ourselves accountable to a piece of paper that told us where to put our money.
Here are 10 signs you should create a budget:
- You fight about money with your spouse. Fighting about money is a very common thing. If you create a budget, you have less to fight about in the finance department. You both know where your money is going and you both know how to allocate how much is going where. You should hold budget meetings to discuss debt payoff as this also gets you both on the same page and helps you stay accountable to where your money is going.
- You are overwhelmed with your finances. You are overwhelmed by where your money is going. You feel stuck and you need a way out. We have been there and I will tell you first hand that when we decided to create a budget, that feeling of overwhelm was significantly reduced.
- You don’t see a way out of debt. This is really interesting. Most American families are ok with having debt for 30+ years. They are ok with paying a mortgage or car payments. They have credit card bills and payments that go out each month. We saw that trend with us and we decided that we didn’t want to pay other people with the hard earned money we were making each month. We decided that we wanted to get rid of as many bills as possible and have more money coming to us. If you feel hopeless and consumed by your debt, create a budget. It will help you with a way out.
- You want to live out your dreams. Most of us have an idea of what we want to do in life, but we don’t have the money to do it or it just doesn’t seem realistic. If you have a dream that you want to pursue, but you don’t have the cash to fund it right now, you need to create a budget. Life is so much better if you live up to your purpose. You will suddenly have more money available and you will be able to afford to do what you want to do.
- You want to have money for retirement. If you want to create an awesome retirement and be able to travel or buy a house on the beach when you are older, start thinking about ways to do it now. Don’t wait until you are in your 60’s to plan for retirement, do it now. What do you want your retirement to look like? Take steps now to plan for it.
- You want to pay for college for your kids or at least contribute to their college fund. College is going to be super expensive when my kids get to that point. If you have a dream to help your kids financially with college, but just can’t see that happening because of the bills you have now, create a budget.
- You see your life as very different from what it is right now. I have to be honest…. This was me when we first started our journey. I saw us living a life that was less stressful and more profitable, but I had no idea how to get there. I was trying to convince Greg to start using cash for our purchases or at least use the debit card and he was sold on using credit to get the perks from the credit card. I wanted us to only spend the money that we had in our account. After our trip to Virginia, we both changed and realized that we needed to pay off debt as we had this vision of what we wanted our future to look like. We started really digging deep and create our Frame to Freedom motto that we would be free of our debt as soon as possible. That is how I see our future. I do not see us living in debt up to our eyeballs and being stressed out. That life just isn’t appealing to me.
- You have goals you want to accomplish. Do you have a bucket list? Do you know when and how you will achieve things on that bucket list? Do you have the financial means to make it happen? We recently took a vacation and one of the things on my bucket list is to buy a beach house. We have a real estate business and have focused on buy and hold rentals over the past 4 years. When we took our vacation, I made it clear to Greg that we will own a beach house to eventually retire to. When I talk about retirement, I am not talking about in my 60’s either. I want us to retire when Greg is 50. I want us to have the freedom to visit that beach house whenever we want. That is freedom.
- You hate looking at your bank account. I know this feeling all too well. Before Greg and I met, I hated looking at my account. I hated looking to see how much was in there and how much money needed to go out at the first of each month. I don’t dread it anymore. Sure, there is still money going out, but we have cut down our bills significantly since we decided to create a budget. The sting isn’t as painful when you look at the number that you have to pay for bills going down.
- You need help staying organized with your money. A budget is a way to stay incredibly organized with what is coming in and what is going out. It is a way to know exactly what is going where. It is easy to maintain and lots of fun when you cross something off the list. It is fun for us to add to our “Frame to Freedom” when something is paid off. Our frame holds all the bills we have paid off since we started this journey. It is our vision board to financial freedom.
Bottom line, a budget is not a bad thing at all. It can really help you stay organized with your money and allow you to plan for all that you want to accomplish in your lifetime. Don’t look at a budget as a negative. Instead, look at it as a way out of financial stress and a way into freedom. In fact, let’s just tweet that shall we.[bctt tweet=”Budgets are a way out of financial stress and a means to achieve future freedom.” username=”BeckyFrametoFreedom”]
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