Many of us like to work hard and play hard. The moment they get paid, they would spend the money. However, we should learn to manage money in a better way.
Here are the reasons.
1. Ensure your future life. Future is unpredictable, no one knows what will happen next. Saving for future is like an insurance, which can help you build in a level of security and help you go through emergencies.
2. Avoid over-spending. When you make plans or do money management, it can help you quickly know where your money is going. Therefore, it makes us easily understand what is left and spend money more carefully.
3. Reduce monthly cost. Sometimes we don’t know what we are paying for or we do, but just ignore it. By reviewing the cost every month, we can totally understand the charge and figure out several ways to save money.
4. Use spare income wisely. If we do a budget, we’ll know what has to be paid. With all the bills listed in the paper, you can hardly miss a bill.
5. Make your pay day. You can pay all your bills in one day. After doing so, you are sure that there is nothing left and feel relieved for the rest of the month. This is also a guarantee that your important bills are paid first and foremost.
6. Reduce charges for late payments. For example, if you pay your credit card lately, you’ll be charged an extra interest of your balance. Making a budget can avoid this and remind you to pay your bills on time.
7. Have a big picture. When you start to do a budget and record your spending, it quickly helps you build a big picture and gives a broader vision. You can see your income and expenditure in a clearer way. In the long term, this will help you gain more money.
8. Bring you calmness. You won’t feel worried or anxious anymore if you know where your money is going. It also helps you tackle new financial demands. Once you have done the job, it also brings a sense of satisfaction.
9. Make use your spare time. When you have a clear budget, you can plan some days with your family or your friends. You can with the money you saved to have a fun vacation.
10. Avoid vicious financial spiral. Sometimes you may find yourself in debt but have no money to pay. So, you maybe apply for another credit card to pay the other. That’s a vicious spiral. By making a budget, it can effectively avoid this situation.