Think of your budget as your financial diet. Just as you may occassionally need to go on a weight-loss diet, you may occassionally need to tighten your monetary budget. For day to day living however, it should be about maintaining a healthy balance – allow yourself some treats but focus on good, healthy meals first and foremost.
Most people only start to budget when they need to save money or pay off a debt (that is, the “weight-loss diet”). By designng yourself a budget for living and saving comfortably within your means, you may never have to expose yourself to periods of extensive purse-string-tightening again.
A budget is actually about deciding in advance what you would like your money to be spent on. Because we have a tendency to react to our paycheck with an excited rush of day-dreaming about what we can spend it on (usually spending it five times over), it is a good idea to have already made this decision before the money comes in.
What do you gain from budgeting? It ensures that commitments like bills and loan repayments are met every month, that you have sufficient groceries in the cupboard, that you can afford some treats and you don’t have to worry about an impulsive buy costing you sleep months after your enjoyed it. It means that you don’t have to waste time every month deciding what you can and can’t afford – you write your budget once and free up your time for more important things.
Most importantly, if you have decided in advance what you will spend your money on, when it gets to the end of month you won’t be wondering where it went. You will already know and you will be pleased with the answer.