I have a confession. I’m a personal finance blogger and I don’t have a budget! WHAT?!
You read that right, I don’t have a budget and believe it or not, not everyone needs a budget to make smart financial decisions.
Don’t get me wrong, though, we keep a very close eye on our finances and always know where we spend our money.
We have a pretty good idea of what expenditures are coming up, too.
To top that off, we spend significantly less than we earn which gives us plenty of buffer room to not have to budget.
So, if I don’t need a budget to be financially successful, why should other people have a budget?
I’m a bit weird because I love doing all of this personal finance stuff. Not everyone else keeps as close of an eye on their finances as I keep on mine.
Here are just a few people that, in my opinion, need a budget to succeed financially.
You Have Credit Card Debt
If you’re in credit card debt, you need a budget. Why? You need to work on extinguishing this toxic form of debt as quickly as possible. That means buckling down and attacking your debt with everything you have.
Come up with a strict, but manageable budget that allows you to survive, but pay off you debt quickly.
You Have A Spending Problem
People with a spending problem need a budget. These people are the least likely to give in and budget, but they’re likely some of the ones who need a budget the most.
Budgets don’t have to suck. Budgets can be fun. If you want to budget all of your money on clothes and booze, simply forgo living in a house and put your mortgage or rent money toward going out every Friday night.
However, if you prefer to live a more balanced life, budget going out a couple times a month in a more modest fashion and you should be able to afford the house at the same time.
You Have An Income Problem
Income problems can happen to anyone, but if you have an income problem you need a budget. Whether you are unemployed, underemployed or simply don’t have a solid income, a budget will help you keep your head above water until you take advantage of the next opportunity that comes your way.
Without a budget, you could easily spiral downward deep into debt. Once in debt, you can no longer take advantage of opportunities because you have to kill the debt again before going on to bigger and better things.
You Don’t Save For The Future
If you don’t save for the future, a budget should be a top priority. While you may be spending just as much as you earn, your finances could easily be ruined by one small event.
Budgeting will allow you to start saving by eliminating expenses that you didn’t even know existed. If you weren’t aware of these expenses, chances are they weren’t important either.
Everyone Who Wants A Budget
Even if you don’t fit in one of the above categories, if you want a budget you should have a budget. Budgets are great tools when used correctly. They don’t have to be suffocating and they can lead you to a bright financial future.
We don’t have a budget because we have a very good handle on our finances. Once you feel comfortable with your finances, you may want to drop your budget, too.
Just make sure you continue tracking your finances, reviewing your expenses and making adjustments as you realize some of your old budget categories are getting out of control.
Do you have a budget? Do you think everyone needs to have a budget? Let me know what you think in the comments below!