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Personal and Business Banking

Benefits of a Budget

July, 2018

Using a budget to track what you're spending and saving puts you in control of your finances. Budgeting offers many advantages, not only for your money but also your well-being, helping you:

  • Live within your means – It's easy to overspend when you're trying to keep up with friends and family who always have the latest and greatest of everything. Being a version (or two) behind on your cell phone or gaming system isn't the worst thing in the world, and holding out for a few years before upgrading these devices will save you a lot of money.
  • Think before you buy and avoid overspending – Before making any purchase you should always ask yourself: "Do I really NEED this? Is there something else I should be spending this money on (or should I be saving it)?". This will help you determine which purchases are necessary and which ones are impulsive.
  • Focus on your goals – Setting financial goals, and holding yourself accountable for achieving them to the best of your ability, can help you keep your spending on track. For example, if you want to pay off a credit card balance, work it into your budget so you're not spending that money instead and digging deeper into debt.
  • Be prepared for emergencies – Budgeting a little each month to set aside for emergency expenses is a great way to be prepared for whatever little surprises come your way.
  • Sleep better when you don't have to worry about money and paying bills – Setting and sticking to a budget is a great way to ease some of your financial stress. Keeping up with the bills and keeping your spending in check can help you to worry less!

Sticking to a budget may be challenging at first, but in time you will likely be checking it every day and appreciating how useful it is. Seeing your savings grow thanks to smart financial habits is a great achievement, too!

Benefits of a budget