The importance of proper budgeting can never be overemphasized! Having financial stability takes massive amounts of pressure and stress off any individual or family. Once created, you MUST keep to it for these important reasons:
1. It helps you determine what your long-term goals are and helps you work towards them instead of drifting aimlessly.
2. It helps to ensure you do not spend money you do not have. This is key. Credit cards are a big no-no!
3. It helps lead you to a happier retirement by putting aside money for the future. Then once retired you can be more comfortable, not have to work longer than you would like to and enjoy life more.
4. It helps you be more prepared for emergencies. This year has definitely showed us that we need to be prepared for the unexpected. By having an emergency fund in your budget and putting a little in consistently, bad things won’t catch you off guard.
5. It helps you recognise bad spending habits. A budget gives you a clear idea of where your money is going and helps you see where you should spend less.