While most people set resolutions, like learning a new skill or hobby, reading 100 books, and even a goal to get organized, becoming financially fit is often overlooked.
I get it, budgets get such a bad rap but when done right, budgeting is a total boss move for your money. That’s because a budget isn’t just a list of bills or income minus expenses. It’s a road map for your money and that road map should reflect your financial goals and the things (and people) that matter to you.
Here are 5 reasons why getting on a budget is an act of self care and should be your number one money move for 2022:
You’ll know where you stand with your money
This sounds like a no-brainer but with a budget, you will have mathematical confirmation whether or not you have enough money for the things you want and want to do. A budget will also tell you a lot about your relationship with money, if you need to make adjustments like trimming back expenses, cutting out unnecessary purchases, and/or increasing your income, in order to reach your financial goals.
You get to spend money without guilt
Buyer’s remorse is real and is often associated with purchasing on impulse without any intention or regard for your financial goals or purchasing on borrowed money. However, with a budget, you’re able to spend money (within reason of course) without any guilt. That’s because you’ll know that your necessary expenses are covered, you’re putting money towards your financial goals, and whatever is left to spend is yours. So if you set a clothes budget of $300 a month, for example, shop to your heart’s content within that budget you set for yourself.
You’ll gain peace of mind
Financial health and mental health go hand-in-hand. When you’re not in control of your money, you don’t know where it’s actually going. This can lead to lack of sleep, anxiety, depression, and cause you to further avoid your financial situation, sending your mental health into further decline. However, when you take control of your money by getting on a budget, there’s no second-guessing or uncertainty because you know exactly how much money you have, instead of wondering where it went when you really need it.
“However, when you’re on a budget and putting it to work for you (i.e., bills paid, smashing your savings goals, debt is decreasing), you become empowered and confident in your ability to make important money decisions for you and your future self. “
You become confident to make money decisions
When you don’t know where our money goes, it becomes easy to second-guess yourself and be reluctant to make necessary money decisions. However, when you’re on a budget and putting it to work for you (i.e., bills paid, smashing your savings goals, debt is decreasing), you become empowered and confident in your ability to make important money decisions for you and your future self.
You will make your future self proud
Speaking of your future self, you are currently living the life you created for yourself based on the past decisions you made and that includes the decisions made in the past about money. So taking control of your money today will have a positive impact on the life your future self will live. Not only does budgeting your money today decrease the likelihood that your future self will be shackled to debt, but budgeting today means being able to invest and contribute to retirement, so you’ll have money when you need it in the future.
Nika Booth is a money coach, speaker, personal finance content creator, and founder of Debt Free Gonnabe. She’s on a journey to slay her 6-figure debt and created Debt Free Gonnabe to document and share her journey. She now teaches others how to manage their money and pay off debt. She has 40,000 supportive friends on Instagram and won the 2021 Plutus Award for Best Debt Freedom Content. Nika’s work, including her hilarious yet relatable Instagram Reels and TikToks, have been featured on Yahoo! Money, Vox, Real Simple, Mic, XONecole, and more.
