Do you resist setting up a budget for your household finances because you feel like it's too constricting? You don't want to be limited in how much money you can spend on food and fun?
In actuality, a budget can equal freedom for several reasons:
A Budget Frees You from Worry
When you have a budget, you always know that you have money set aside to pay for the important things like your house payment/rent, food, electricity, etc. You don't need to worry about whether you'll have enough money left to pay for the necessities since you've already budgeted for them.
Be sure to also include a budget line item for savings, since it's important to have an emergency fund for any problems that pop up. When your car breaks down, it's freeing to know that it's not as huge of an ordeal because you already have money set aside for emergencies.
A Budget Helps You Get Out of Debt
Being in debt can make you feel like you're a slave to your money rather than you being the one in control of it.
If you have debt to pay off, a budget can show you ways that you can lower expenses so you have extra money to pay off debt. It can also help you make sure that the extra money you have each month actually goes toward paying off debt rather than disappearing into thin air (which will likely happen if it's not designated for debt payoff).
And once you do get out of debt, you cannot imagine how freeing it is! You can focus on paying for current expenses rather than paying for things that you enjoyed and are long gone in the past (with interest!).
A Budget Releases You from Guilt
Even if you're not in debt, having a budget can be freeing. Rather than feeling guilty when you spend money, you can build some fun categories into your budget (if you have some extra to spare). Perhaps, you can have an Entertainment category or a "mad money" category for you and your spouse (money that you can spend on whatever you want).
A budget is basically a spending plan, so you know how much you can spend on each category. If it's budgeted, you know you have enough and can spend without guilt.
Building some "mad money" into our budget for my husband and I works out great. We each have a small amount of money ($20 each) that we can spend each month on whatever we want. Now, we have the freedom to meet a friend for lunch (for example) without being questioned about the expense or feel like we're taking away from the entire family's dining out budget.
What about you? Do you find a budget to be restrictive or freeing?
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