Budgeting - You will decrease your financial risk and increase your financial security
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As you have read thus far, a budget will allow you to make better decisions with your money and will also help you to save more money. The third ‘Value of Budgeting’ is a soft value which will be different for everyone, but will have the same net effect of allowing you to be comfortable and confident about your finances. This comfort and confidence stems from financial security and reduced financial risk which are the results from your hardwork put into properly budgeting your income and expenses and then executing on this plan. It is not a secret that American’s generally have very high-levels of stress associated with finances and in fact, the American Psychological Association published an article stating that nearly 80% of adults had stress related to finances.
Outside of ensuring yourself a successful financial future by spending properly and saving along the way (budgeting!) the single largest value is the comfort you will receive. This comfort can come in the form of less stress, better sleep and/or better self-confidence. In short, imagine if you never had to think about your finances again. Over the long-haul, this is what a budget will provide for you; a set of guidelines for spending and savings that will help you to form long-term habits aligned with your financial goals. If you build these habits, you will begin to think about finances less and less over-time as spending within your means will become natural and you will be freed from the day-to-day stress of financial management How much you spend on certain items and how much you save are very measurable, but your comfort is not. The value of being financially confident is simply priceless.
