Why Make A Budget?

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“Hey, Craig.  What’s the most important financial decision you’ve made?”

I wish my answer could be more glamorous.  I wish I could tell you it was that stock I bought for .10 cents that is now worth $85.  I wish I could tell you it was my decision to buy a piece of property right before the economy improved.

However, one of my first answers would be dry and boring – the decision to start a budget.  Sorry I couldn’t give you anything more flashy, but I think that the decision to start budgeting has been one of our best financial decisions.

20 Reasons To Start A Budget In 2010

  1. You and your spouse can be sure you’re on the same page financially.
  2. You can make a plan to pay every bill that you will receive.
  3. You’ll never have to say – I just don’t know where all the money goes.
  4. It can be a painless process if you have the help of a budgeting tool like You Need A Budget
  5. There is no greater tool to help you pay off debt.
  6. You might actually be able to have some money for a vacation.
  7. Gives you something to do – cheap, free entertainment.
  8. Sense of accomplishment.
  9. Secure your financial future.
  10. What better way can you honor the 40 hours + that you worked hard to earn your money?
  11. You can make a giving plan.
  12. You’ll learn a new skill.
  13. It is a challenge.  Like I never say, “Why skydive when you can budget?”
  14. You already have everything you need – a pen and paper or if you have internet (I’m guessing you do if you’re reading this post) .
  15. Budgeting reduces stress.
  16. Budgeting will help you achieve some financial goals.
  17. When you budget, after a month or two you feel like you’ve received a raise.
  18. You can stop feeling guilty.
  19. You can pay for things with cash when you want to buy them
  20. Budgeting is a good example for your children and helps lay a healthy financial foundation for them.
  21. It will save you tens of thousands of dollars over a life time.
  22. Helps keep you organized.  This is important if you ever need to file a warranty claim or return a product.
  23. Forces you to take a second look at your spending habits.  This second look could help you make some important cut backs.
  24. You cannot get to where you’re going until you know where you’ve been.
  25. Because I said so.

3 poor excuses for not starting a budget

It’s too much work.

It does involve some work.  Yes, most of your work will go towards setting up the budget.  However, once everything is set you can keep your budget with minimal effort, but you must first develop the habit.  You can significantly reduce your budgeting time by using a free template or by purchasing You Need A Budget.

It’s not worth it.

How do you know if you’ve never tried it?  Setting up a budget is like a treasure hunt.  You will find money lurking in almost every financial corner.  You will find places where you’ve almost literally been throwing money away.  After a few months you’ll ask yourself – where did all this money come from?

I make too much money.

There is a misconception that only vagabonds should budget.  However, as stewards entrusted with our money by God, it is important that we handle our money just as God would want us to.  There is no clearer way to review your spending for a stewardship purpose than by budgeting.  At the end of the year you can easily ask – did I spend my money appropriately?  You can ask this question because you tracked your spending.

Photo by amber rae lambke.

Any other good reasons to start a budget?


  1. says

    #26, you can start a long term savings program. It’s tough to do that without knowing what your cash flow is, and I’m guessing the absence of a budget is the main reason most people never save any money.

    Actually, starting a budget isn’t dry and boring at all. It’s the foundation of financial security, and that’s pretty exciting.
    .-= Kevin@OutOfYourRut´s last blog ..Save a Bundle By Repairing Your Eyeglasses =-.

    • Craig says

      Thanks for putting the budget in a positive light – the foundation of financial security. Great perspective.
      Thanks for adding a #26. I wonder why I called the post 20 reasons when I really had 25? I guess good bloggers always under promise and over deliver. Either that or I forgot to change the title.

    • says

      I must show my thanks to you just for ricsueng me from this particular incident. After surfing throughout the online world and coming across tips that were not beneficial, I figured my life was gone. Living without the strategies to the problems you’ve fixed through the website is a critical case, and the ones which may have negatively affected my entire career if I hadn’t discovered your web page. Your personal understanding and kindness in maneuvering all the details was useful. I am not sure what I would’ve done if I had not come upon such a point like this. I’m able to at this moment look forward to my future. Thank you so much for your professional and effective help. I won’t be reluctant to suggest your blog to anybody who would like direction on this subject.

  2. says

    I signed up for your ebook. I’ll be interested in what the Lord has taught you. I’m interested in increasing my income in order to give more into the kingdom of God. I tithe and believe all Christians should tithe.

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