When you saw the word ‘budget’ in the title of this article, what did you think of? Did you shudder and think of your own dire financial situation? Maybe it conjured up negative feelings of unnecessary busy work, a task that you’d rather go to the dentist instead of doing? Budgets to many are not something that is thought about or worked on very frequently. For many of us, we don’t really have a plan and just hope we have enough of a balance in our checking account when it comes time to pay rent or the credit card bill. It likely won’t come as a surprise to you but here at YMF, I’m a big fan of budgeting. Sure I might take it to the extreme and over obsessive a little, but everyone has their thing, right? Anyways, being a big fan of a budget, I wanted to take some time to explain how, contrary to popular belief, having a budget can make life more fun.
Know where I stand
A budget is simply a tool to give you a look into where you stand. A budget asks you to look realistically at your situation, and be honest with yourself. With a budget, you can get a clear picture of your financial situation. If you’re up to your eyeballs in credit card debt, you should probably take ownership and admit that. If things are ok but you don’t really have an emergency fund or a safety net, you should own up to it. Whatever your situation, a budget gives you oversight into how things are going. By looking at your assets (income and saving/investment balances) and your liabilities (bills, rent, debt) you’ll know where you spend your money and where you should be spending your money. Having a budget gives you peace of mind; no one like being lost or the feeling of hopelessness. Regardless of whether your financial situation is good or bad, a budget lets you know in a meaningful way how you’re actually doing.
Feel confident about where I’m going
Although it might be true that not all that wander are lost, certainly some that wonder are! Without knowing where you’re going, you’ll certainly never get there. A budget is a powerful tool as it helps you set goals. By knowing the current balance on the car loan or knowing that you’d like to build your emergency fund up to $1,000, a budget gives you a plan to get there. And when you have a plan for where you’re going, you’ll feel much more confident and empowered about getting there. Knowing that paying $250 each month towards the car loan lets more forecast out and know that it’ll take me 14 more months to be car loan debt free. By planning and setting aside $100 each month, I’ll know that it’ll take me the rest of the year to hit my goal of $1,000 in savings. Knowing where you’re going and how long it’ll take you to get there will give you an incredible peace of mind, and also get you fired up for getting there!
Don’t feel guilty
The problem of not having a budget is that you really don’t have a good sense of where you stand. As such, oftentimes purchases make us nervous, as we’re just hoping that we have enough in the bank for the charge to go through. Or we worry about having enough for rent at the end of the month. Without a sense of security in our financial standing, even small purchases can always leave us wondering which will be the purchases that makes us go into the red. On the flip side, having a budget leaves us feeling guilt free about purchases. I can confidently go out to eat on Saturday night because I know it’ll fit into the budget. I don’t have to feel bad about taking a weekend trip as I know I’ll have enough to pay the mortgage next month. Having a budget can make life so much more enjoyable by taking the uncertainty and the guilt away from purchases!
Plan for more meaningful fun
Having a budget is basically having a plan, and having a plan means I think ahead and ensure that I’m ready for the future. As such, I’m able to dream big. A European vacation? Why not! A down payment for that dream house? Yes please. A budget allows me to set goals and achieve them. Budgeting gives me the roadmap to where I want to end up; I know that for that European vacation next summer I need to save $250/month. Knowing my current financial state grants me the freedom to make adjustments as needed to meet that goal. Some months I may be able to save more, which could allow me to save less the next month. Instead of living in fear and just scraping by, a budget forces me to dream big, set goals, make a plan and keeps me accountable to achieve them!
When used correctly (and diligently), budgets can be an incredible tool. Whether it’s the YMF approved template (found on the site) or something fancier like YNAB (You need a budget) or Mint.com, find a budget that works for you and your needs. The best budget is the one that works for you. Budgeting offers many incredible financial hacks that’ll help get you ahead. Hopefully now you’re a believer and you’ve realized that having a budget can really make life more fun!
Personal Finances are certainly top of mind for many of us. If you're looking to get serious about improving your financial situation, we've got lots of great materials all over this site! Additionally, we realize that there's a lot of noise out there, and so we created PERSONAL FINANCIAL GUIDES focused on topics with all the info you need, and without any of the noise/ads/clickbait. 
When you have a budget for something and you’ve saved for it, you don’t have to stress at all about how you’re going to pay for it. You already know the money is there. That makes things or experiences all the more enjoyable.