Why You Need a Budget
Read time: 2 minutes.
Happy Friday and welcome to the first newsletter for Friday FinTips! I hope you enjoyed your week and have some exciting plans for the weekend.
Today, I want to talk about why you need a budget (or why I needed one, at least).
It puts you in charge
Budgeting is a way for you to tell your money where to go instead of just seeing where it went at the end of the month. Knowing where your money is going helps you get a better grip on your finances.
It prepares you for the fun times
What’s the point of working if you never have fun? A budget allows you to plan for fun experiences and still have money left over for important things…like groceries.
A couple months ago we went to some really great restaurants during NYC Restaurant Week. Since then, we’ve modified our budget a little to afford nice meals more often. Granted, not VERY often…but more often.
It prepares you for the not-so-fun times
No matter how well you plan, there will always be an unexpected expense. A good budget will prepare you for them.
An article on Fortune from May 2023 said almost 40% of people do NOT have enough money to cover a $400 emergency expense. Having a budget and prioritizing emergency savings will help ensure you’re ready for those rainy days.
You can do this!
Start small and build it over time. You'll likely have to make some changes along the way (I certainly did). But, just keep in mind: You got this!
That’s all for this week. See you next Friday!
If you have other topics you're interested in, reply to this email or contact me.