Why Budgeting Is So Important

Guest Post by Money Coach, Ashley Feinstein – Knowing Your Worth

One of the most important components of our overall financial wellness is living by a budget that’s in line with our values and goals. Budgets, or as I like to call them, ‘happiness allocations,’ are a very basic concept but when used correctly, can set us up to live a very happy life! Why?

We spend within our means

One of the most critical parts of a budget is knowing what money is coming in and what money is going out. We aim to spend less than we earn. Not only does this prevent us from accumulating debt or burning through our savings, it’s one of the best ways to reduce financial stress! It’s not a good feeling to spend more than you have.

We allocate to what’s most important

At any given point, we have a certain amount of money to spend either from our job or an allowance from our family. When we spend this money in a certain way, we lose the option to spend it on something else. When we take an honest look at how we are spending our money, we have the opportunity to change or continue spending as we are. We get to decide what’s most important to us and how our money can support what’s most important to us. That’s powerful! We can maximize the happiness we get from each dollar we spend.

We know what’s available for our goals

Even more than spending within our means, when we have money leftover after supporting our lifestyle, we can use that for various savings goals. We might want to save up for a vacation, a new house or apartment, put it toward a wedding, or save up to invest in our own businesses. When you think about it, all of our life goals have a financial component. We either have to support ourselves while achieving those goals or there is money required to pursue them. This is why our financial life is a part of our overall wellness. When we have a budget, we can figure out how much money we have available to allocate to each of our goals each period and then can even figure out when we will have enough money to achieve them!

About Ashley Feinstein 

She is a money coach based in New York City who works with clients on knowing their worth, whether they are creating a financial plan, negotiating compensation, or paying down student loans. She helps them redefine personal finance on their own terms, to look beyond face value and fearlessly ask for what they want.

 

Need some assistance getting your spending under control?

30 Day Money Cleanse_May 201530 Day Money Cleanse: Ever wonder, “Where is all my money going?” or notice that you never have any money left over to save? You are not alone. I am here to demystify the world of money and personal finance for you! Through this 30 day program, I will empower you to make conscious and intentional financial decisions that maximize your happiness and success. By the end of the 30 Day Money Cleanse, you will have a spending plan that works with your lifestyle, doesn’t feel restricting and helps you reach your biggest life goals. I invite you to join me for this very special program starting January 12th.

Follow:
Sherita Rankins
Sherita Rankins

Detroit born, NYC based Model, Actress & Host, is the Editor-in-Chief of Busy Wife Busy Life. This fashion expert and former finance professional loves to travel and is a total foodie. When she is not staying “busy” she loves to cook, play tennis and relax on the beach.

Find me on: Web | Twitter | Instagram | Facebook

Leave a Reply

Your email address will not be published.