10 signs you need a budget
Published on October 14, 2015 6:20 am, by Jen Bakker
We hear lots of excuses (oops I mean reasons) for not having a budget. You have enough left to pay your bills, your partner takes care of the money stuff, you don’t have time, it’s too complicated, you won’t stick to it anyway…and the list goes on.If you resonate with one or more of the following, chances are it’s time to get budgeting!
- You ask yourself “where has all the money gone?” Do you run out of money between pays? Do you have to wait a few days to pay a bill that really should be paid today? Are you not quite sure how you spent your money?
- You’re paying interest on your credit card. Credit cards are dangerous. If you are not paying it off in full every month you should be. A budget will help you spend less than you earn & repay debt.
- You are juggling more than one credit card. See #2. You probably already know you are in dangerous territory. It’s hard to save when you are in an endless cycle of paying down credit card debt, interest and fees.
- You don’t have money put away for emergencies. As well as the big ticket emergencies that cost thousands like the loss of a job, what about an unexpected bill, an insurance excess, a big dental expense? Have you thought about what you would do if your income stream was to stop or reduce? Experts recommend stashing away at least 3 months’ salary for rainy days.
- You don’t know when to say no to spending money (or yes for that matter). You go out without thinking of the cost and regret it the next day when you pull the ATM receipt out of your pocket. On the other hand, you say no to doing something you really want to because you don’t have the confidence you can scrape the money you need up in time.
- You don’t know how much you spend on eating out, going drinking, groceries etc. Bill territory is a bit like the great unknown. You have a bit of an idea how much you spend each week on food, but not really. You probably spend $100 on a Friday night going out after work, but you’re not sure.
- You and your partner argue about money. You think there is money in the account and there’s not, so somebody must have spent it! You have things you want to do together, but not the money to do it.
- Savings – what savings? You have goals (vague ones) about travel you would like to do, a house you would like to buy, a wedding or child you would like to plan for, but you haven’t opened an account to put the money in to, so it’s just not there!
- Your choices are limited because you “don’t have enough money”. There’s lots of good things to do that you don’t consider because you don’t have the money. You visit the beach for a day trip, rather than going away for a week of sun.
- More money goes out than comes in each pay period. You are pretty sure you are spending more than you earn, but you’re not sure how to change that.
Related Articles –
10 Tips to being MoneyBrilliant
MoneyBrilliant – Money Coaching
Step 1 – just think about it
Step 2 – be honest about what you do
Step 3 – where does my money really go?