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why I have a budget

December 13th, 2008 at 09:56 pm

Here's the thing with a budget for me:
I don't actually use it in the conventional sense. I don't look at it and go 'right, I can spend X on this and oh dear I am over on that by X amount so next week I can't spend X on this or that', which is what most people do.
I've never had a problem with debt in the sense that I spend more money that I can expect to pay for at the end of the month. I have a car loan, which is my only debt and which I researched for a good six months before I went through with it.
The only reason I have a budget is because I like looking at where I can put my money and seeing how everything fits neatly into place. I have it so I can see what I have to spend money on, and what to expect to spend it on in the future. I have it so I know where to allocate money. I use it as an organisational tool.

I like to track my money - how much I make and how much I spend and save. Since I've been doing that for nearly two years now I have not had to look at my 'budget' regularly, only when I update it: when my wage increased or when I start to have another expense.

I like to play around with it and see what I could afford if say, I lost my jobs, or my rent went up, or we had a baby. Or lately, and more realistically, if we bought a house, or if our flatmate moves out.

A budget gives me a sense of security because even though I don't really use it for anything on a day to day basis, it's helped me understand my own money and what is possible. So I think it's important to sit down, even if you're not the budget type, and just write a list of your yearly/monthly/weekly bills and expenses, and your income. Just to see where you're at. Even if you just do that and throw it out, atleast you've done it and you have an insight into your own finance.

5 Responses to “why I have a budget”

  1. Ms. Pearl Says:
    1229213049

    agree!

  2. Apprentice Fun-Frugalist Says:
    1229222879

    You are wise/mature way beyond your years !! Good for you :-)

  3. Analise Says:
    1229223888

    You are very wise to have a budget. Many 21-year-olds would not think it is necessary, but it does help you see the big picture and track where your money goes.

  4. homebody Says:
    1229226008

    When I was 21 I had a baby and my older sister and I would do our projected budgets for a year in advance. We had so much fun doing that. We were just reminiscing today about it! That was about 30 years ago! We are still discussing our budgets!

  5. Amber Says:
    1229229905

    I agree 100%

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