You’ve probably heard a lot about the importance of budgeting, and it deserves all the attention: following a budget really does help you manage your spending and achieve peace of mind about where your money is going. 

If you want a little more motivation to start, here are a few benefits of following a budget. 

Makes it easier to crush your goals

With a budget, you can break down your larger goals into bite-sized pieces every month. 

As an example, say you want to save $5,000 for a new car in 3 years. 

You’ll know that if you save $139 a month, you’ll reach your goal of $5,000 in 3 years. 

This will give you confidence about where your money is going, and a real purpose to save some of your money (and not spend it all on things that don’t help you reach your long-term goals). 

Can stop overspending in its tracks

Trust me, I know- it’s easy to mindlessly overspend. We’re inundated with sales emails, ads, and social pressure everyday to spend our hard-earned money. 

The convenience of credit cards don’t make this any easier. We can spend a lot of money with the click of a button or the tap of a card. 

Having a budget for spending money on the things that are easy for you to overspend on can help stop things from spiralling out of control. 

There are even a variety of apps that can track every purchase you make automatically (You Need A Budget is a popular example of this). 

Keeps you on track to retire someday

A budget is a great tool for remembering to contribute to your retirement savings. Even if you’re only saving a small amount each month, you’ll be glad you did when it comes time to retire (yes, even if that is decades from now!)

Helps you to prioritize an emergency fund

It’s recommended that you have 3-6 months worth of living expenses saved for a financial emergency (this includes unexpected events like being laid off at work). 

Having this type of savings is very important, but can’t be done overnight. 

You can save a percentage of your paychecks to go towards your emergency fund and save this amount up over time. 

Gives you peace of mind

The above points are just a few of the many reasons to start a budget, and they all have one thing in common:  they give you a greater peace of mind. 

Wherever you’re at with your finances, and however scary it feels to get up close and personal with your money: you will still benefit from having a plan.