Household Budget – What it Does for You

Do you have a household budget? Are you looking to take control of your personal finances and start saving for retirement? It may seem like you don’t have enough money to start putting money towards your retirement, but believe it or not, preparing a household budget can go a long ways to getting you there. Establishing a household budget is a great way to be intentional with your finances. While it isn’t magic, it will help you succeed with your finances – here’s why…

Setting Goals: The great benefit of establishing a household budget is that it will help you set goals. By budgeting out how much your are going to spend each month, you are setting goals for yourself, whether you realize it or not. Itemizing your budget, or separating it into categories, allows you to see what is achievable if you take away all of the urges to spend or waste your money. In other words, creating a household budget allows you to envision what it would be like if you did not have any other competing voices.

Accountability: While the budget may offer you a world where there are no competing voices, we all know that when it comes down to it, reality is much different. It is hard to resist impulse purchases. It is hard not to be disciplined. Yet, when you have a household budget in place, holding yourself accountable because that much easier. You have to realize that you will have to explain why you allowed this mistake when it is time to review the budget at the end of the month.

By setting up a household budget, you come to realize that you aren’t going to be perfect. Instead, taking charge of your finances is a work in progress. You may make some mistakes, but as long as you are willing to keep working at it, you will be well on your way. If you’re lucky, you could find yourself working your way out of the middle class.

Have you created a household budget?

2 Responses to Household Budget – What it Does for You

  1. Marianne says:

    I always stress that our budget allows us to spend. Prior to having a budget, I felt bad about every purchase regardless of whether we needed it or not because I didn’t know if it was ‘ok’ for us to have spent the money. Now that we have a budget, if I want to buy clothes and there is money in the clothing budget I can spend away and feel no guilt. It is very freeing. Also, before the budget I felt like I was always saying ‘no’ to my husband. He would say, ‘can we afford this?’ and since we had debt, my answer was always ‘no’. Now he can look for himself or if it’s a want he can take it out of his spending money and I don’t have to feel like a mean mother anymore. It’s much better.

  2. […]    Purpose of Budgeting » The Price of Being Organized It was just recently that my wife and I started talking about replacing our old desk. A few years ago, we got this desk through craigslist when we were furnishing our apartment. We got a lot of great deals, including the desk for free (it came with the dresser that we got for $10). We are generally pretty frugal and can live with things not being perfect for the sake of saving money. We enjoy using our money for certain things like traveling, and so being intentional about saving money on certain areas is one of the reasons that we budget. […]

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