Why You Need a Budget
A couple weeks or so ago I held a You Need A Budget giveaway where commenters listed their top reasons we all need a budget. Since then, I named the winners. Because very few of you probably read all 37 entries, I thought it was appropriate to share the winning comments since there are some great reasons why we all need a budget. First, we'll start with the grand prize winner, Scott:
You need a budget because building wealth is not possible without self-discipline.
A budget is an essential tool for setting goals; establishing reasonable boundaries that are necessary for meeting those goals; and measuring your performance and holding you accountable to those boundaries. If you lose ground, a budget will alert you to this fact, and you can adjust your budget to compensate. If you exceed your goals, a budget gives you some freedom to enjoy any excess you are blessed with.
A budget is an essential tool for exercising financial self-discipline!
And now for the five runners-up (in alphabetical order). From Arme L:
In life, we have to plan for many things to succeed. To pass an exam, we study. To win in a game, we practice. To be financially stable, we need a budget. Even corporations and our government need a budget to function.
Budgeting helps us manage limited resources (our money) to fulfill our unlimited wants (our demands).
Everyone has wants, so we all need a Budget!
Did he just mention "budget" and "government" in the same sentence? How'd he win? ;-)
Here's what Ben submitted:
Budgets are a pact between your current self and your future self on how you plan on living your life.
Ohhhh. A little philosophical there, huh? I like it!
Next, here's Blaine:
Without a budget, you will find it very difficult to save for your future or to fully enjoy your present. Budgeting allows you to make sure that you are spending less than you earn, and it also allows you to spend money without having to worry about whether or not the expense is going to interfere with your future. If you set money aside for frivolous expenses, then you can fritter that away on anything you want without being kept up at night. You will still have a nice nest egg when you are ready to change careers or retire.
Here's what Charles had to say:
I spend too much time away from my family and put in too much hard work earning money to allow it to simply walk out the door without a prioritized, assigned purpose.
And finally, Jana weighed in with this:
You Need a Budget because without it you end up with all the latest DVDs, books and designer clothes looking cool for the year. Your kitchen is stocked with more equipment than the best seafood restaurant in town. You are well known to all the hostesses at the 5 star restaurants and your new car has all the newest gadgets and the most beautiful paint job in the world. And as you sit in your amazing Martha Stewart decorated home, surrounded by all the coolest things; it's hard to see them when the lights are shut off. It's hard to appreciate them when they are being hauled away by the IRS. And one day, when you are stuck in the county assisted living facility; parked under a tree for 8 hours in the 100+ degree heat, you can reflect on why you have no money left to help with your bills you can say, well, I wanted the see Shrek in HD! BLAH!
VERY FUNNY!
And finally, as if you already haven't heard enough about budgets, here are some thoughts from me:
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