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We work hard for our money and should be able to enjoy ourselves — but it’s important to make sure we’re spending within our means. Learning budgeting skills can give you that freedom while helping to avoid taking on debt and the stress that comes with it.
More than half of 22–29-year-olds have no money set aside at all. While budgeting may seem like a hassle, it’s easy to get started with many banks now offering budgeting features as part of their mobile apps. Here are four ways a budget can benefit you.
Become a Better Saver
When you budget, you assign your money to different categories, and one of those categories could be your savings. Having more money put away for a rainy day will give you more freedom when that rainy day comes.
Saving money doesn’t have to mean stopping doing what you enjoy either. You can still allocate money to having fun as long as you have enough left elsewhere. Tracking how much you’re spending can also help you spot areas in which you could easily save — like unused music or TV subscriptions.
Avoid Going into Debt
While it’s normal to take on debt from time to time, such as with a student loan, it’s not healthy to be doing it every month when you don’t need to.
With a solid budget in place, you’re less likely to be relying on credit cards or constantly borrowing from parents or friends by making sure you’re not spending more than you make.
Stop the Money Worries
Knowledge is power, and knowing exactly where your money is going can help you to worry less about your spending.
Budgeting gives you control over your finances and can stop you fretting as the end of the month creeps up. It can be a sensitive subject, but if you’re in a better position, you’ll be less likely to argue over money with friends and loved ones too.
Reach Your Goals
Sticking to a budget can be more difficult than making it, but setting personal goals is a good way of doing just that. They’re also useful for working out how much you need to save and for how long.
You could be aiming to save for a flat deposit or be trying to build up the funds to buy your first car from a dealership like Unbeatablecar. If you can visualise what you’re saving for, you’re more likely to make smarter decisions with your money every day.
With these four reasons in mind, you’re better placed to get started with your budget today.
Morgan: London-based Morgan is a digital marketing and content executive who specialises in lifestyle and money saving tips. With both in-house and agency experience, Morgan writes content for a variety of different niches and sites. In her spare time, she can be found keeping up-to-date with current affairs and frequenting her Instagram feed!