The Importance Of A Budget
We all like to look the part in expensive brands from time to time. However does it really suit our budget after all. From experience it really can have a negative impact long term, not just from a wealth perspective, in fact our overall mental health too.
Over a matter of months many of us can lose track of what we’re spending, in the life of a person that trains on a weekly basis, this can add up to huge amounts of hard earned money.
When keeping fit we break a sweat, it’s natural for us all. It’s also confirmation that you well and truly are getting the workout your body needs. However, how long can the items were wearing really last?
Look at runners for example,
A pair of running trainers go through so much wear and tear we are required to buy new pairs sooner than we think. Now I’m not saying to buy cheap trainers that are uncomfortable and deteriorate within a few days, this is not the answer. What I want you to know is that you can find what suits your needs while maintaining a budget which is healthy and keeps you happy. More affordable products can provide the same outcome. It’s just the brand were flaunting after all.
Budgeting allows us to create a spending plan for our money. It gives us the chance to spend on the things we really need in our daily lives without struggling to pay for them.
Here’s several steps to consider, firstly we should set a goal. Grab your pen, paper and note down what is important to you. This is called goal setting.. By doing this we can put aside the bits we don’t really need and you may realise their just for your own satisfaction.
Secondly, we can now identify our monthly income. Note this down and compare your outgoing expenses. Don’t forget your weekly outgoings such as household essentials, food shopping and of course your weekly car fuel bills. Remember, take into account EVERYTHING!
By getting into a habit of working this out we can save a lot of our hard earned money over the year, thankfully reaping the rewards we desire at a later date. Patience is key and so is your happiness.
Now we separate the needs from our wants. If were constantly spending on the stuff we want, this is called impulse spending. We spend more on these items than we should, why!? It’s a want, this becomes unplanned on more than one occasion, then you find your budget quickly going downhill. This can be down to two things, Firstly imagine this..
We’re in a great mood, It’s hot and sunny in which we’ve decided to visit the local beach, we walk along in our favourite outfit, shoes off and let the sand creep between our toes. You notice an ice cream stall, we order what we ‘want’ followed by the melted hot chocolate doughnuts on sale… STOP… we’ve just spent more than we need to because we’re in a great mood. Realistically do we need to be this greedy?
Secondly, we can be in a bad mood which also leads to impulse buying. We tend to buy things that will make us feel better. However, this is only ever gonna be short term yet have a long term effect on your budget.
Now were able to design our budget, we’ve taken away the wants. We now have extra money to utilise. One thing inparticular I was always guilty of was not having an emergency fund. These are savings you put aside for times to cover your basic living costs, such as a sudden replacement of a boiler in your home, or to fund a car repair. This is so we can fund these emergencies without causing ourselves more debt potential.
Put your plan into action, you can now eliminate the wants from the needs. Apply your money to the essentials in your daily life and start saving for an emergency fund, if you haven’t already.
Great, looking ahead we should be consistent at monitoring this. However, as part of your budget allow a certain spending amount each month for the things you want, as we can’t eliminate these things forever, it’s impossible!
By limiting your budget on the wants you can still be satisfied both physically, mentally and financially.