I realize that creating a budget and living by it isn’t fun. No one likes to have to think about the fact that can’t do and have everything they want when they want it. But…unless you are independently wealthy, chances are you have to use some discretion. If you haven’t made a budget yet, here are 3 signs it’s time for you to do so.
Why You Need to Start Living on a Budget
If any of the following sounds like you, then it’s time to take a deep breath and recognize the fact that your life would be a lot easier and yes…even fun…if you created a budget and started living by it.
1.You have no money left over at the end of the month – Are you living paycheck to paycheck? Hey, I’ve been there and done that and its no fun. In fact, it does nothing but cause you a great big boatload of stress.
Think about it. What do you do if you have an emergency? And you know they happen when you can least afford them. Thanks, Murphy’s Law!
So, the bottom line here is, if you run out of money right before you get paid, then you are definitely spending more money than you are bringing in.
I get it, peeps. Sometimes, you’ve just got to do what you’ve got to do, but honestly, living paycheck to paycheck doesn’t allow you to save for emergencies, for retirement, or for a great vacation for you and the family to take next year.
2. You own money on your credit cards – One of the worst things you can do when it comes to your monthly bills and finances is to owe money on a credit…or credit cards. Yikes!
I know…I know if you don’t have the cash to pay for something you need like food or your electric bill, what choice do you have?
Even so, if you can’t pay off the balance in full each month on your credit card, then this is a sign you need to start living on a budget.
You also need to get those credit cards paid off…no if’s and’s or but’s. Also, no judgment here. I’ve been right where you are. That’s why I know just how stressful it can be.
The problem is, the longer you keep those balances on your credit cards, the more you pay in interest and the harder it is to get out of any financial hole.
3. You don’t have any savings – Chances are, if you are using credit cards to pay bills, then you don’t have any money in a savings account or emergency fund.
You know how it is…
Life enjoys bitch slapping us just when it hurts the worst. Your car is going to break down or you’ll lose your job or have a health emergency right when you are short on rent money or your kid needs new uniforms for school.
Regardless of what the problem is if you don’t have something in savings you’re kind of stuck between a rock and a hard place. You will start to feel desperate, and desperation makes you do stupid things.
This is the last place you want to find yourself. It’s also the last place I want you to find yourself.
Anyway, it all comes down to this. If you are nodding your head yes to any of these three signs, then folks, it’s time to start living on a budget and get your spending under control.
Living on a budget doesn’t mean you have start wearing prison garb and eating gruel. You can still get out there and enjoy life. In fact, when you know you can pay your bills on time and have a little extra in savings, I can promise you, you will enjoy life even more.
(Before you go, why don’t you sign up to receive my free Easy Peasy Budgeting Cheat Sheet. Just click the, “Click to Download,” button now.)