Budgeting is a very useful tool when it comes to managing your income. It can be a real trial to wrap one’s head around the usefulness, so here’s some ideas of its benefits.
To start, budgeting gets you to become aware of where your money is going. You might think that you already understand it all, but if you actually take the time to budget you’ll realize the numbers add up differently than in your head. A simple example is grocery bills. It’s hard to tell how much the price piles up when much of what you’re buying is under ten dollars, it can easily get over a hundred! Keeping track of it all helps you realize how much you’re actually spending.
And when you realize how much you’re spending, you’re, in a way, finding more money to spend with. It may be superficial, but it really feels like you have more money than you did before because of your better spending habits.
It can also be a pain to save money for retirement vacation or otherwise, or to pay off debt for example, without budgeting. With a budget the amount is already decided, but without one it may feel like pulling teeth when you decide what to do you your income. That savings can come in handy in the case of an emergency!
Similarily, shopping becomes much less guilt-ridden when you budget for it. As long as you follow the budget, all the expenses are accounted for. You won’t end up finding your bank account too low and regretting purchases afterwards.
Hopefully that all helps you figure out how budgeting can be helpful to your life! We really encourage keeping a budget to stay stable with your income and expenses.