Budgets are important tools to help you meet these financial goals because they help you save regularly and consistently each month. Perhaps you have a longer-term goal, such as buying a first home or building retirement savings. These may be short-term goals for the next three to five years, such as saving for a car, or paying off student loans or credit card debt. Budgeting helps you meet short and longer-term goalsĮveryone has life goals that cost money. And because you’ve budgeted for it and know you can afford it, you’ll have the freedom to enjoy yourself without worrying about overspending, going into debt or even negatively impacting your credit when you want to have a good time. Yet including it as a spending category gives you permission to participate in favorite outings or activities. A household budget lets you enjoy your discretionary expenses too!ĭo you enjoy restaurant meals, sporting events, concerts, or weekend getaways? A personal budget reminds you not to exceed spending on “fun”. It’s harder to “forget” to pay a bill or set aside money for expenses when you’ve gone to the trouble of writing it down or inputting it into a spreadsheet or app. A budget reminds you of your expensesĬreating a budget highlights your monthly expenses such as rent, food, utilities, transportation, medical, and debt repayment costs.
#You need a budget 5 free
If you prefer the convenience of tracking your personal budget on your smartphone, try either Mint or You Need a Budget’s handy free budgeting apps. Create your budget using a pencil and paper, or try our Kawartha Credit Union budget template. Include all your income, such as wages, allowances, investment earnings, business income, bursaries, and scholarships. Track your take-home income – what actually gets deposited to your bank account after taxes and deductions. Budgets show you what you have to spendĪ budget shows you exactly how much money you have to cover your expenses each month. Here are five reasons why budgets are important for personal financial success. Managing your money wisely becomes much easier when you use a budget. And while you likely enjoy the chance to spend money how and when you want, this financial freedom comes with responsibility.
If you’ve recently moved out on your own, started a new job, or even moved away to attend college or university, you may have to manage your own finances for the first time ever.
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