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Should I Keep A Budget?

Is it Important to Keep a Budget?

Budget-300x200Anyone who has money to spend should, at some point, learn how to set a budget. At the very least, a budget will give you some kind of direction — a plan to follow so that you’ll have enough money to pay for the things you need, and hopefully, for the things you want. Everyone has goals, right? And in terms of financial goals, it is practically impossible to achieve what you are aiming for if you do not have a budget.

If you still need a bit of convincing to start one, Practical Taxes, your affordable accountant in Billings, lays out 4 of the most important reasons.

 

Control Spending and Avoid Debt

Before the age of credit cards, it was much easier to live within one’s means. It’s quite simple, you have to make sure that you spend just enough so you can pay for everything you need, or else you might end up having nothing to eat, having your utilities disconnected, or having to be thrown out from your apartment because you can’t pay for rent. Now that there’s plastic money, however, responsible spending has become more of a challenge, rather than what used to be a norm. It’s just become so easy to have your credit card swiped, and promise to pay for it later. There’s hope, though. Even if you have access to both cash and credit card, with a set budget, it will still be possible to manage your finances and make sure that you know just how much you can spend each month — with savings to spare, and without having to go into debt.

Set Short-Term Goals; Achieve Long-Term Goals

Keeping a budget will give you a clearer picture of where you are, and where you are going. If you have short term goals, it’s only logical that you should have long term goals too. How else could you give something up if you aren’t looking forward to something better in the future? So you might feel bad that you can’t have that new laptop or that divine-looking dress you know would look absolutely gorgeous on you. But if you remind yourself that it’s a small sacrifice you’re making so that you can buy that new car you’ve been saving up for, then it will be probably be that much easier to keep your money in your pocket and walk out of that store.

Be Prepared for Emergencies, and Retirement

If you don’t keep a budget, it will be that much harder to practice what financial experts have been recommending, is to pay yourself first, before paying others. Essentially, you should make savings part of your budget, and not an afterthought. This way, you’ll have what you need to deal with the unexpected (emergencies), as well as the expected (retirement).

Develop Discipline

One of the primary purposes of having a budget is for you to keep track of how much you are spending, and what you are spending for. If you don’t set a budget, there won’t be anything stopping you from eating out for every meal, buying all those clothes and shoes that catch your eye, going out for a drink every night, and just spend, spend, spend. But, if you are aware and mindful of where your money should go and where you want it to go, you will learn when to say “yes”, when to delay and say “some other time”, when to say “it’s time for a change”, and when to say with conviction — “definitely not!”

Practical Taxes Helps you Keep a Budget

A budget is not something you get right the first time. Changes are always happening and you need to be able to adjust accordingly. Remember that a budget is something to guide you after all, not restrict you from actually having a life. So while you’re working your butt to pay for all those bills, don’t forget to keep your eye on the prize and assure yourself that though the journey might be hard, reaching your destination will make it worth your while.

Let Practical Taxes prepare your taxes this year. We can help save you money, and get a larger refund than you thought possible. This means that you can bolster your emergency fund and not have to worry about breaking your budget if something unexpected happens.  Call 406-894-2050 today to schedule an appointment.

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