![]() ![]() For example, a budget can help you identify whether you’re spending too much in one category or not enough in another. It helps you make financial decisions.īy allocating a certain amount of money to each category, you can better make financial decisions. Once you have kept track of where your money is going, you will be able to identify spending that isn’t in line with your financial goals and redirect that spending to help you meet goals that are a priority for you and your family. That’s a downpayment on a home or a really nice vacation. What could you do with an extra $1200 each year? In five years it would be $6000. For example, maybe you stop for coffee every morning on the way to work, without thinking that this habit can easily add up to $100 a month to your expenses. If you’ve never budgeted or tracked your expenses before, you might be surprised at how much money you probably waste each month. Once you have a clear picture of where you are actually spending your money each month, you will be able to assess whether your spending actually reflects your priorities. Following a budget also encourages you to track your spending carefully, so you don’t go overspend. This is often a wake-up call for many people. ![]() The first step to creating a budget is to track your expenses. ![]() Have you ever gotten to the end of a pay period, checked your bank account, and asked yourself, “Where did all my money go?!” A budget can answer this question. Here are 7 reasons why budgeting your money is a must: 1. Regardless of your reasons, budgeting your money is a critical part of successful financial management. Or perhaps you think you’re getting along fine without one. Maybe you’ve never really thought about budgeting, or maybe you think it’s unnecessary. If you fall into the other 51%, you probably have your own reasons why you don’t budget. According to a worldwide survey conducted by VISA, only 49% of Canadians keep and follow a household budget. ![]()
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