Having a budget is an important financial lesson that’s often overlooked
A recent survey demonstrated that only 49% of Canadians have a budget.
Do you currently have a budget in place? If the answer is no, is it because you don’t have enough time? Find it boring? Feel anxious or overwhelmed? Don’t know where to start? Well guess what, you aren’t alone.
Having a budget puts you in control of your money, at the very minimum, you need to understand how much money you have coming in and how much is going out monthly. It’s an in depth analysis of how you’re managing your money.
At this point, you may be wondering why you should allocate time into creating one? Listed below are 3 reasons:
- Goal Achievement – Are you saving for a down payment? Planning to quit your job and travel for a year? Buying a new car? Getting out of debt? Whatever your goal is, a budget will help you work towards it. It forces you to assess your spending habits and in most cases, you’ll likely cringe. Similar to that toxic ex you need to cut ties with, you’ll have an urge to leave your toxic spending habits in the past. Keep your eyes on the prize, a budget reinforces the goals you’re actively working towards.
- Sense of Control – Once you have a concrete plan in place to achieve your goals, you will feel empowered. Empowered to make sound financial decisions, for example, how many times do you question if you can afford a new purchase mid-month? More importantly, if it’s in your best interest? Instead of tapping your credit card and having regrets later, you’ll stop yourself from making senseless decisions.
- Building a Savings – At this moment, the current savings rate for Canadians is only $850 per year. How many of you have less than $1000 in savings? Well you’re in luck, we can grow your savings but you need to start by creating a budget. Having savings means you’re no longer living pay check to pay check. This means you’re equipped for an emergency, Covid-19 is a prime example of the importance of preparing for a rainy day. Once you’ve established a savings, you’ll realize you’re finally gaining control over your finances!
Now, although budgets don’t grow miracles (you won’t get a raise overnight, money won’t magically bloom on trees), you will witness a significant difference in your financial health.
If you need guidance on how to start, feel free to reach out to me directly by connecting with me on instagram.
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