Creating a budget for your money will allow you to have freedom to live the financial life you so deserve. Similarly, having a budget alleviates the stress of unexpected expenses. Not only does it give you guidance on how much money to spend on the items you need and want but it also prevents you from running out of money before your next paycheck. In addition, creating a budget gives you peace of mind, alleviates stress and increased happiness because you are creating flexibility in your personal finances to potentially make big purchases. More important, when you create a budget and follow it, you are establishing flexibility in your finances which leads to freedom, freedom to enjoy your hard-earned money.

1. Find financial freedom

• Awareness of how much money you have left after paying expenses out of each paycheck
• The bills do not shock you (you know they are coming)
• Cancel recurring expenses you don’t need/want anymore.
• Examine monthly or annual expenses that seem high and shop around to get the best rate.
• You will understand your income at a deeper level.
• Recognize your monthly expenses and distribute them equally among paychecks
• Awareness and motivation to save money each month

2. Create a Budget to alleviate the stress of unexpected expenses

Alleviate the stress of unexpected expenses by budgeting your money and creating an emergency fund. Imagine what you can do with the time you spend thinking or stressing about how you are going to pay your credit card bill, unexpected medical expenses, new tires for the car, or home repairs. For this reason, it is so important that you have a plan in place while budgeting your money for unexpected expenses. Ultimately, it removes the stress and you can focus on how or where to get your repair fixed.

When we feel stressed, our bodies become worn out and tired. As a result, you can be at increased risk to sicknesses because the immune system is not working like it should. When we are so tired and have no energy it makes it harder to prepare healthy foods and we end up choosing processed foods that are more expensive. Then, it makes finding the motivation to exercise much more difficult. This can lead to more medical bills and increased stress levels.  

However, when we are exercising and eating nutritious foods, we are taking on a healthy way of life. This typically leads to lower medical bills. Our mind and body are connected and it’s important to keep them healthy with regular exercise and a good diet. Exercise is known to decreases stress levels. Have you ever noticed that when you go for a walk or exercise, you feel so much better? I know I do.

It is a very good idea to have a separate line item and savings account for unexpected expenses when budgeting your money. Typically, I would recommend $1,000 to start. This is not much money but is a good starting point. In fact when I did this, it took away the stress of paying for unexpected expenses. Especially when I was determined to start a budget and pay off my debts.

3. Create a budget and stop wondering why you never have money

Have you ever had the experience of getting half way through the pay period only to find you don’t have much money left? Ugh! I remember when that used to happened to me. Under those circumstances, it was so frustrating and angering. It always seemed like when I ran out of money, that is when fun opportunities would arise or an unexpected expense would occur.

This can also be a time when you think you aren’t making enough money. However, if you put together a monthly budget and live within your means, this doesn’t have to happen to you anymore. You can get out of this cycle. I don’t want you to live like this anymore. I will show you how. Get in touch today!

Here is a step by step guide on “How to budget for beginners“.

4. Create a budget to get peace of mind, alleviates stress and increases happiness 

• When you have an emergency fund of approximately $1,000, there is no need to stress when unexpected expenses come up because it’s already covered!
• No more wondering if or how you can pay your bills next month. You will have it organized in a budget knowing what bills to pay with each paycheck.
• Image what you could do with more energy? Worrying takes up a lot of energy. For this reason, create a budget and stop worrying!
• Having self-control while spending money leads to personal financial success, satisfaction and inner happiness. This can happen for you too.

5. Create a budget to get flexibility in your life 

When you are budgeting your money, you are in control of where your money is going and how much you are spending. Therefore, glancing at your budget, you can see your income, expenses and how much money you are saving each month.

When I started budgeting my money it increased my awareness in my spending habits. It also gave me the opportunity to think about my expenses and determine if each purchase was really important to me.

When you have flexibility in your budget, it also gives you flexibility in life. For example, if you wanted to switch jobs because you are no longer motivated to go to work, you need to reference your budget to see if you can take a pay cut. Ultimately, a different job with a pay increase would be great however, sometimes we take employment for the pay and not the job. Definitely, when you have a passion for a job, you will excel at it, which could potentially lead to promotions.

Maybe you want to go on vacation. Yes, we all need a break from work and let our bodies and mind relax and enjoy ourselves. This needs to be part of the budget. Ultimately, the most important reason is so that when you return from vacation, you are not more stressed out than before you left because you spent too much money.

What if it’s time to upgrade the car/truck? It is important to prepare your budget for a newer vehicle. Auto insurance will probably be more expensive along with the tabs and then the new car payment.

If your budget allows for additional spending it is going to give you more opportunities to make big, life changing choices in your life. It gives you freedom. Freedom to switch jobs when your job is not a good fit for you. It gives you freedom to buy your first house or a larger house for a growing family, a vehicle and any other big purchases you would enjoy to have. When you are able to manage your money, it gives you flexibility in your life to make changes that enhance your life and ultimately bring you peace and happiness.

6. Create a budget so you can enjoy your hard-earned money 

I think it’s a great idea to have a savings account for fun times. As you get to know me by reading my articles, I like to keep our money separate for different things. I don’t necessarily have that many savings accounts (well, ok, I do!). But I do have a savings account for fun experiences.

You know the saying “laugher is the best medicine”, when we are able to relax and have fun it is very good for us. We work so hard for the money we make, I think it’s important to set some money aside to enjoy it.  

In Summary, budgeting your money is really the foundation of personal finance. It gives you an awareness of where you are spending money and how much money you are saving each month. Ultimately, budgeting your money alleviates unnecessary stress in your life. When you can control your spending, you get flexibility in life to make big purchases along with personal satisfaction. Personal Satisfaction leads to personal success and feeling more confident about your personal finances. That’s what I want for you!