Living in New York City has taught me a thing or two about budgeting. To think I had Carrie Bradshaw dreams that came crashing down on me real quick when I realized it’s expensive to live in this jungle. Luckily, I was quick on my feet and made adjustments to support my new out of graduate school lifestyle. I taught myself how to budget, which is something education institutions do not teach you.
As you all know NYC is rated #2 as the most expensive cities to live in right behind San Francisco. Moving to NYC forced me to realize I needed to implement a budget fast and stick to it. I can proudly say since my move three years ago, I have budgeted every month and have successfully mastered it. The best part about mastering my budget is that it has allowed me to take control my finances and not let NYC take control of me.
A lot of people are turned off by budgets. It’s that dirty little word that no one ever wants to hear. The first thing people think of is restrictions and limitations. Well, the lie detector test determined that is a lie. Budget, budget, budget. What it does is provide you transparency and freedom. Budgeting can actually save you money, and allow you to have more to spend by helping you to make the most of your money. Here are 5 reasons you should start budgeting now
1. IT PUTS YOU IN CONTROL
Don’t you want to be in the driver’s seat of your finances? There’s nothing worse than spending all your money and then coming up short for rent or an unexpected expense. By budgeting and allocating money appropriately you can ensure that you have money to cover your fixed and unexpected expenses.
2. ELIMINATES DEBT
I don’t know about you, but when I think of debt, I think credit cards. By budgeting, you can set aside money and create a plan to pay down your high-interest rate cards. Remember most credit cards operate on an annual percentage rate. An annual percentage rate is what you will be charged on all or a portion of the balance if the full amount isn’t paid on or before the due date. The longer you keep the balance the more interest you will pay, which means you should start paying off your highest interest rate cards first.
3. NO MORE WORRYING ABOUT WHERE YOUR MONEY WENT
Freedom and Transparency I cannot reiterate how much budgeting will do this for you. After I started doing this I could see exactly where my money was going. Set a budget = No more wondering where your money went.
4. SAVE MONEY
I hope this is not surprising. You can actually save so much budgeting. You can cut expenses where needed and allocate funds to something you’ve always wanted to save for i.e. that awesome vacation you’ve always wanted. You’d be surprised how much you spent on unnecessary stuff once you start creating that budget.
5. REACH FINANCIAL GOALS
We all have financial goals from buying a car to paying off that pesky credit card debt. If you put a plan into action to pay off or save, you will reach your goals for sure. I believe in writing stuff down, putting it in the universe and making it work for you. There’s nothing like the feeling of paying something down or saving enough for something you’ve worked so hard for. Failing to plan, is planning to fail. Start planning now!
Whether you live in NYC or not, having a budget is crucial. You should be in the driver’s seat at all times. Take control of your life and start budgeting now.