5 Reasons Why Planning a Budget Is Worth It 48

5 Reasons Why Planning a Budget Is Worth It

This is a guest post by Matthieu Dalant, a French-Canadian blogger based out of the beautiful city of Montreal in Quebec. His topics of interest include everything from business growth to tech trends and futurology.

Any financial expert worth his weight in gold will tell you that planning a budget is a good idea. But have you ever wondered what the true benefits of budgeting are?

Budget planning is one of the most effective money management tools at your disposal but it does take some time, effort and of course, self-control.

While it can be somewhat demanding, proper planning is an important course of action to take in securing a comfortable future.

No matter your current financial situation, implementing a simple budget right now will do wonders for your bank account down the line.

Here are some reasons why planning a budget is totally worth it.

Goal achievement

In order to see success, it’s incredibly useful to start setting goals.

For a good place to start, the goals you set for yourself should be:

• Motivating
• Measurable
• Well-defined
• Achievable
• Written down

One of the best and most motivating reasons to start planning a budget is for the achievement of goals, whether short or long-term.

With a good plan, you can prioritize money for things such as relieving debt, making a down payment on a home or kick-starting your own business.

Many people decide to use loans for these types of goals, which of course have to be paid back. While this can work for some, there are many things to consider before taking out a loan. If you instead budget properly, you can achieve goals without worrying about paying anyone back.

Wealth building

Another highly motivating reason to keep a budget is for wealth accumulation. In other words, being wise with your money today so that you can have more financial freedom in the future.

Setting aside a certain amount of money every paycheck can help you profit greatly in the future. Budgeting will allow you to make smarter investments, eventually increasing your total income and by extension, your overall happiness.

Having a budget can also reveal excessive spending habits and help you phase them out, which is explained further down.

Being prepared for emergencies

Life tends to throw us some curveballs and it’s better to be prepared than risk being struck upside the head by them.

Suddenly being laid off from work, unexpected health issues or deaths in the family can easily put you in financial disorder.

If, however, you have an emergency fund for these situations you will be thanking yourself because the last thing you need is to struggle with money while facing a possible crisis.

You don’t even need to put away a huge chunk of cash for emergencies, as little as 20$ a week can make for a good emergency fund.

Eliminating wasteful expenses

Once you begin to track your expenses, you will surely start to identify areas in which you spend more than you have to.

These revelations can save you a significant amount of money in the long-run without drastically changing your way of life.

Wasteful expenses amount to putting your earnings in someone else’s pocket instead of your own. When you impulsively buy something useless or unnecessary, the trade-off is real long-term value for short-term pleasure and it is almost never worth it.

Final thoughts

In addition to all the above stated reasons, one should not ignore the benefits of budgeting on stress and anxiety. People tend to be much happier when they don’t have to worry about financial issues all the time.

Start planning your budget today and you can achieve your goals, build wealth, be prepared for an emergency and do away with wasteful expenses. While it may not be easy at first, it will pay off in spades in the long-run.

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Becoming Your Own Boss: Tips on Getting a Business Off The Ground 8

How Writing a Blog Can Help You Live the Life You Dream About

Becoming your own boss is a complicated process, and not everyone does it the same way.

I got lucky. I was still working when I got my business off the ground, so I had a source of income while I was working the kinks out of my business. I did most of my work for the new business when I got home or on the weekends. I asked for a change in job responsibilities at the office so that I didn’t have as much on my plate.

This all gave me a chance to start earning money without going into debt. When it was feasible, I stopped working my regular job and transitioned into working for myself full time. It took about a year and a half.

Establish clear boundaries.

 

Sometimes people don’t take you seriously when you tell them that you work for yourself. They think you are always available to chat or have lunch.

I had a number of friends that would call me at all hours, assuming I was available because they wanted to talk. Granted, it was nice to have that freedom at first. But, I soon realized that if I was going to be successful, I couldn’t let those kinds of distractions interrupt my workday.

Save before you start working for yourself full time.

I was in pretty good shape when I made the transition, but looking back, a few more months with a paycheck would have been wonderful.

When you start your own business, money can be very tight. You never know what you are going to make month to month.

I had one customer that initially made up most of my revenue. That customer only paid on a quarterly basis, which meant that times were tough in between payments.

I had to spend money to build the business, which meant there wasn’t a lot left over. If I didn’t get a payment right on time, it was very difficult to deal with.

There were times when I had to ask for a loan from family members simply to pay my bills.

Reach out and build a support network.

4 Tips to Track Your Remote Employees' Progress Without Demoralizing Them

It can be really difficult to adjust at first. You have great days and you have terrible days. You meet goals some months, while other months you are left wondering where you went wrong.

If you make a mistake, you alone are responsible for it and your business and reputation can suffer. It is easy to feel depressed at times. You may even start to feel like you can’t handle running a business and that you made a big mistake when you left your office job.

Remember that you are not alone. All entrepreneurs have these moments, which is why it is so important to connect with others in the field.

Take time for yourself.

I had a honeymoon period of about half a year. It was really exciting to see the business get bigger. Each milestone that I met was a reason to celebrate.

However, heading into the second year, it was more difficult. I was tired. Things weren’t as exciting because they weren’t new anymore. And then, year three came along. I was done with working such long hours.

I was done with having no time off. Burnout is certainly an issue in this business, so you have to figure out how to balance your personal and your professional needs.

It took me a long time to get where I am today. I had to do a lot of research. I had to educate myself on business. I had to find an SEO expert. I had to figure out who my main competitors were and keep an eye on them. I also had to stay current with what was happening in the field so that I didn’t fall behind.

No matter how hard I worked, it seemed like I could never get caught up. Running a business is a big responsibility.

If you are interested in starting your own business, you want to set yourself up for success. Try to cut back on your living expenses. Make sure you have substantial savings. Set up an area in your home where you can work, free from distractions.

If you are married, get your spouse on board. He or she can help pay bills while you are getting your business off the ground.

Your business is only as good as you are.

Make sure you have a support system of other business professionals. These people can help you acknowledge your weaknesses, encourage you to keep moving forward and advise you on common mistakes.

You can try and go it alone, but it will be very difficult for you. As with anything else in life, your support network has a lot to do with your success. You are probably strongly invested in your business; after all, it is something that you created. Make sure you have people that you trust to help you along the way.

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Grace Lee has been practicing in the field of digital marketing for several years now. She has already brought numerous sites in search engines’ first pages in search results. In her spare time, she loves listening to podcasts about Google algorithm updates and other matters related to SEO.