Last week, we talked about the importance of using a zero balance budget and said we’d come back to discuss some less-than-obvious benefits of budgeting (you know…besides staying on budget). So here we go.

 

1. Improved communication
   If you’re married/have a significant other/someday want a significant other, being able to co-manage and discuss money fairly is imperative. In fact, money issues are a leading reason for divorce in the US.

   In my marriage, we sit down at the first of each month and discuss where exactly we’ll spend our money. It forces us to plan and think ahead, to be intentional with our spending and to set honest expectations with one another when it comes to making purchases. You build trust knowing that you’re each on the same page, and some months, you end up working through unexpected problems that (inevitably) pop up – which is what marriage is all about!

2. It gives you a clear goal to dream about
   I haven’t done extensive research on the subject, but I’m pretty sure most people fall into one of two money categories: those with debt and those without debt.

   Regardless of which category you’re in, let your money goals motivate you!

   If you have debt, let your budget get you excited about paying it off and finally getting the monkey off your back! With a budget, you’ll be able to extrapolate out how much time you have until you’re set free from those payments. So even if it’s just a small light at the end of the tunnel, use that end-date as motivation to stay on track.

   If you’re debt free, dream about what you want to do next. Set a budget to save for a new car, a vacation, a puppy or whatever! Delayed gratification is the key here. Use your budget to pay for things with cash. These goals are obviously a little more fun to dream about, but being rid of debt helps them come to fruition so much faster.

3. It’s personally empowering
   When you have a plan, you feel more prepared. When you feel more prepared, you have more confidence. And I don’t know about you, but having confidence is a pretty critical element to anything I do.

   Even if you’re projecting to be short on your budget for the month, you’ll know it on day one. That means you have 30 more days to put in hard work and find enough money to make ends meet. You won’t be caught off guard with three days left in the month to pay a bill.

   If you have a surplus, that means you have the chance to give and make a difference in someone’s life. Or you can go shopping knowing that your budgeted “free spend” money can truly be spent on anything you want. It takes the guilt out of purchases. And that’s equally as liberating.

So how about you, have you been able to tackle budgeting? Have you seen any benefits of budgeting in your own life? I’d love hear about your experience in the comments below.