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Five Reasons Budgets Are So Important

You simply cannot underestimate the importance of creating and sticking to a budget. There are so many benefits to ensuring your financial security, even though it may be difficult, it is definitely worth it.

Five Important Reasons for Keeping to Budget

1. Creating a budget helps you to determine what your long-term goals are and ensures you are able to plan towards working up to them instead of ‘just getting by’.

2. Sticking to the budget ensures you do not spend money you do not have. This is critical! Credit cards are a big NO-NO!

3. Budgeting helps you plan for a happier retirement, by putting aside money for the future. Upon retirement you will be able to live more comfortably, not be forced to work longer than you would like and better enjoy the rest of your life.

4. A budget helps you be more prepared for emergencies. Last year was definitely very challenging year and demonstrated that we need to be prepared for the unexpected. You can do this by having an emergency fund in your budget and putting a little in consistently. Then when bad things happen, they will have less financial impact.

5. Keeping track of your budget helps you recognise bad spending habits. You will be able to see exactly where all the money is going and that will help give you an idea of where you should spend less.