Faith-Based Finances

Current Article: Why a Budget is
a Good Management Tool

Not having a budget can ruin your plans
to get out of debt.  If you’re not already in debt,
the lack of a budget can get you there. 
In the basic sense, a budget is just a plan for spending and saving your money.

Budgeting isn’t a bad thing

When you think of a budget, do you think of a lot of mind-numbing number crunching?  Do you think of living a miserly life void of movies, cable, internet, and other “expensive” ways of having fun?  To you, does budgeting mean you’ll be living by candlelight and rinsing out your paper towels?  Budgeting is none of those things.  Put all those unattractive thoughts about budgeting out of your mind.

Budgeting makes life easier

Done correctly, a budget will relieve a lot of the stress from your financial life.  No more worrying about if you have enough money to pay your bills.  With a budget, you know the answer to that question upfront.  If you need to figure out where to cut back, a budget can help you pinpoint the exact spot.  Need to make your money last the next two weeks to a month?  A budget is the answer to many of your everyday financial questions.

Why is a budget so important for managing debt?

Imagine taking a roadtrip across the country without a roadmap or compass.  Sure, you might get there after many detours, turn arounds, and delays.  Or you could get a roadmap, map out your trip, and get there with a lot less trouble.

It’s the same way with managing debt.  You could successfully get out of debt without a budget, but how long would it take and how much would it cost you.  Instead, living out a budget will make getting out of debt much easier.

A budget will help you figure out exactly how much you can afford to spend to get out of debt.  Not only that but it helps you figure out where to squeeze more money from your debt.

Once your debt has been paid off, a budget will help you keep your finances on track to keep you from getting back into debt.  A budget will help keep your spending under control so you don’t have to rely on debt to make ends meet.

By LaToya Irby
www.About.com

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