Budgeting. The word makes people cringe. They don’t want to think about it, talk about it, much less learn about it… even if it’s one of the best things to improve your finances! I have to be honest though – if you see budgeting as restrictive, I think you’ve missed the point. You see, budgeting isn’t intended to be a set of hard rules. It’s supposed to be a personal map that leads to more freedom not less.
The western culture we live in today is too materialistic, and we often live well beyond our means. The way we approach our spending is not sustainable. We need to have a good hard look at how we use debt and we need to ensure we’re saving adequately and consistently. We’ll get more enjoyment out of our “things,” we’ll have a lot less stress in our lives, and we’ll enjoy a sense of freedom as we work to live rather than live to work.
The idea of paying yourself first is powerful because it encourages consistency. You guarantee that saving is a priority. While everyday life can throw us curveballs to manage, there’s a lot of things you can do start saving more today.
Just about every other goal starts with a plan – your finances should be no different. Better saving starts with better budgeting (and budgeting discipline!). The best budgets are simple, realistic and plan annually, not monthly. Most people agree on the first two, however the idea of planning annually is pretty unique. Personally, it’s helped me to increase my savings by almost 25%. Learn how to save more by creating a good budget.
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