When you hear the word “budget,” what immediately comes to mind? Number crunching? Being frugal? Anxiety? Like the word “credit”, budgeting can have a negative connotation, often stemming from fear.
We often fear what we don’t understand or have little knowledge of. In the credit union, we hear members say they know they should have a budget but don’t know where to get started. Sound familiar? Let us take the fear out of creating a budget by starting with the basics.
Check out the short video below from It’s a Money Thing where we explain the basics of budgeting in 3 minutes.
Having a budget is extremely important not only to reaching specific financial goals but to your overall health and well-being.
According to LearnVest, a budget will:
- Give you a clear picture of your financial situation so that you can live within your means.
- Show you how much you can afford to spend—right down to the dollar—on everything from food ($200) to rent ($900) to a cocktail dress ($103).
- Keep you motivated and accountable on your way to reaching your financial goals.
Getting started with a budget is half the battle. Once you get in the habit of knowing where your money is going and why, you’ll feel empowered to make even wiser financial decisions.
Budget$mart is a free resource for Vantage members from GreenPath Financial Wellness that allows families to create a budget in minutes. Download and walk through the process to see if it might help paint a brighter financial future for you and your family.
What advice would you give to someone who’s still not convinced that creating a budget is a good thing?