The Benefits of Creating A Written Monthly Budget

I have created 333 monthly household budgets in a row since September 1994.

In September of 1994 I moved away from my mother's home and started working as a 7th grade teacher. Over the next 7 years I was paid once a month. I thought it was horrible at first, but it forced me to learn the power of budgeting. I learned some valuable lessons that ultimately changed the game for me financially.

In this quick article I want to share some of the lessons I learned in those 7 years, and what I have learned from budgeting every single month for 28 years.

Check out the video HERE.

All of us can benefit from creating a unique written (or spreadsheet) monthly budget that is unique to each and every month.

Creating a consistent written monthly budget develops financial stability and helps us build a stronger financial foundation. By tracking expenses and following a plan, we can increase our chances of winning with our money.

Whether the budget is written by hand or on a spreadsheet, it is critical. I'm not a big fan of using budgeting apps. Take the time to write a budget or place your numbers in your own spreadsheet. The feeling of ownership is worth it.

Here are 9 benefits of creating unique written monthly budgets.

1. Budgets provide guardrails and parameters to help us stay in our "financial lane", which keeps us focused and on track.
2. A budget is accountability. It is a reflection of our plans with money and if assessed at the end each month, it becomes a reflection of what we have actually done with our money.
3. Budgets help us develop discipline and delayed gratification with our money. A budget gives us the green light to say "no" to ourselves.
4. Budgets allocate our income to match our expenses, and makes us intentional with money. Similar to a business, a budget tracks our income and our expenses.
5. A budget gives us control and power over our money. The more control we have, the less stress and worry we have.
6. Budgets create structure and organization. When our money is organized, it feels like we have more of it.
7. A budget measures our progress and our performance with money. This is why a budget needs to be written. As long as we stick to our budget, and assess it at the end of the month, we are able to measure how we are performing and meeting our goals.
8. A budget provides us with a blueprint for saving and investing. As long as we follow our budget, it is a written record of our yearly savings, investing, and expenses.
9. Budgets are real live evidence that shows we are being a good steward over our financial affairs. It is critical that we know our numbers and properly manage our numbers.

7 Keys To Achieve Your Personal Financial Goals

Bottom Line:?Tracking our monthly expenses, by creating a unique written monthly budget, is critical to our success as a manager over our money. Be sure to stick to your budget, go back and assess your budget at the end of each month, and include saving and investing in each budget that you create. There is a tremendous amount of power in budgeting.

I provide 1 on 1 financial mentoring and coaching and FREE personal financial advice through our blog and YouTube channel.

Please visit us at?smartmoneybro.com?where we work to empower people with their personal finances and discuss practical ways ordinary people can be extraordinary with their money and their real estate.

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Disclaimer: I am not a licensed financial advisor. This article is not affiliated with any government agency or any official government business. This article is for informational and educational purposes only.

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