According to Gallup, 32% of Americans do not keep a detailed household budget. This fact combined with the average household debt level of $135K paints a picture of the perfect financial storm brewing on our home fronts. This worries me you guys!
I think I can safely assume you wouldn’t mind someone coming alongside you to support you in starting and sticking to a budget.
Let’s talk 6 real life reasons you need to start a family budget today.
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6 Half-Way Good Reasons for Budgeting
Maybe you’ve battled the idea of a budget because of the various excuses…ahem, reasons, I talk about in the Beginner’s Guide to Budgeting.
But you’re still looking for someone to convince you that, you do indeed, NEED a budget.
But first, I’ll share why our family started a budget.
Why our family started a budget
I have an especially soft heart for women wondering if they can afford to become a stay at home mom (just like I did!) Once upon a time, we were $90K in debt, living in two different states, with $1,500 a month in loan payments a month. Then our jobs brought us back together, and a year later we were expecting our first kid.
I doubted we could cut our expenses enough to actually pay down our debt in a timely manner without adding more to our credit cards, but I was surprised at how easy it ended up being.
It was because of this time in my life that I developed a passion for budgeting and helping others budget.
P. S. Is the Simplified Budget for Families right for you?
Reasons Why You Need to Start a Budget
Reason #1: Your income or expenses are unpredictable and variable.
Us, us, us! This is us! My husband could make a quarter’s worth of living expenses in one week, and then make nothing for the next three months. That’s how variable his expenses are!
If you never know how much you’re going to make, a key tip I learned was to budget based on LAST MONTH’S income. I learned this while using YNAB software.
While you can’t predict the future, you can budget based on the amount of income you made just last month. Yes, this means your budget changes from month to month.
But that comes with the territory of a variable income too, don’t you think? If you have a variable income, you absolutely have to use YNAB. It’s the best online software I’ve found to handle long-term variable income, expenses, and goals. Check it out here and you can try it free for 34 days.
Reason #2: You’re on a tight budget, and everything needs to be planned to make ends meet.
If you have a low fixed income, a lay-off or you’ve simply recently moved and are looking for work, then you might find yourself on a tight budget.
In my opinion, this is the absolutely most critical time to start a budget. Budgeting is simply giving your money a job to do and then making sure it does the job it’s supposed to. It’s prioritizing where the dollars will go, so you can pay for the important stuff!
When you feel like everything’s out of your control, tightening up on a budget can actually give you something you can work towards to help you improve your financial situation.
Reason #3: You’re hiding purchases from your spouse.
Ouch. This one hurts because I’m embarassed to admit it…but who hasn’t felt a stab of guilt at buying something before? (Please tell me I’m not alone!)
If you’ve ever felt guilt over a purchase, or have thought the phrase, “I need to get rid of this box before my husband gets home.” It’s time to start budgeting. ::raises hand::
Money is a touchy, touchy issue. And between your spouse and you, there’s probably history and emotions.
But I’ve found – money doesn’t have any feelings.
Money tells the story in black and white. If you have a budget, you’re either in budget or out of budget. And when you’re out, you just need to adjust accordingly.
If you make a budget, you can plan “splurge” money. I promise, it’s still just as fun to spend fun money even when you’ve planned for it.
And do you know what? After discussing the budget with your spouse, you’ll then be able to move forward in confidence, and hopefully, the stress you feel over purchases will dissolve away quickly!
Related Post: 14 Remarkably Simple Dos and Don’ts to Support Your Spouse
Reason #4: You want to optimize your saving for fun things like vacations and retirement
This isn’t only a good reason to start a budget, it’s also a reason to stick to your budget!
If you started a budget before but time and time again you didn’t stick to it, then I recommend giving yourself a reward for succeeding.
- If no coffee today equals awesome cruise this summer, then I’m on it!
- If bringing my lunch to work means buying a new car in cash – then fine, I’ll bring a tuna salad for ulnch.
Keeping in mind those bigger purchases motivates you to save the dollars that really add up.
I always think about our coin jar. Throughout the year, we find coins all over the house. When we do, we just throw it into the coin jar. About every other year, we empty the coin jar, and do you know how much we normally have? Around $150 in just CHANGE laying around the house.
That’s what small choices mean. They add up to big pay off for things you really would rather enjoy instead! And it makes having a budget totally worth it.
Embrace delayed gratification for something much bigger and start a budget today!
Reason #5: You make a steady income but you have no idea where your money is going
This is a common household phrase.
The first time I started a budget, I had no idea I was spending nearly $400 a month at restaurants between coffee shops and lunch outings (not even dinner dates!)
You’d be surprised at the number of people that have no idea how much they pay in utilities on average per month or what all those charges on their phone bill are from.
Starting a budget gives you awareness of easy areas where you can save without really changing your lifestyle.
Reason #6: If you’re tired of stressing over emergency bills and unexpected expenses, then budgeting is for you.
I’ve learned something interesting after 7 years of tracking our expenses. I’ve actually found that there are very few unexpected expenses in my life. Why? Because I’ve planned for potential expenses.
From buying new tires for our cars to occasional speeding tickets (not mine), I set aside a little each month to cover these inevitable expenses.. Just using common sense to think about annual expenses and potential bills has allowed us to prepare for all situations!
If you’re tired of stressing over unexpected expenses, then start a budget today.
To get you started budgeting download, here’s a free simple budget template printable.
I’d love to know, what are your reasons for starting a budget? Let me know in the comments!