Hello, beautiful people from across the lands! Budgeting does not have to be as overwhelming or boring as you may think. Some think a budget means restrictions on your spending. That is completely false. It is more like a GPS to ensure you get to your desired financial destination. If that is your current mentality I suggest you finish reading this article. In this post, I cover some signs that point to red flags that a budget is in order. Let’s get into it!
1. Wonder Where Your Money Went
Ever take a look at your bank and wonder where your money went so fast? This was something I experienced on a regular before being intentional about my finances. Not knowing where your money goes is a red flag of possibly irresistible spending. When you do not tell your money what to do it does what it wants and that is not good for anyone.
2. Avoid Checking Your Bank Account
Avoidance behavior is a key factor of fear or shame with how you are handling money. Looking at your bank account is facing the reality of your decisions. If you are avoiding it, chances are you are not happy with the decisions you’ve made.
3. Bills Are Behind or Rarely Paid In Full
I can not count how many times I had to rob Peter to pay Paul. Being behind on bills slowly grows into a snowball of more problems. The stress of not knowing if this will be the month something gets cut off or worse it does. This is a dangerous financial place to be in as problems like this could eventually affect your credit.
4. Overdraft Fees
I don’t know about you but being penalized for spending money is the worst! Overdraft fees are maybe one of the clearest signs you need to start a budget. Spending money you do not have shows there is little awareness of what is coming in and what is going out.
5. Impulsive Spending
Spending without a clear understanding of where your money stands is very detrimental to your financial wellness. Buying because you simply want it does not help you in the long run. Now do not get me wrong, spending freely on yourself or others is not a bad thing. It becomes a problem when priorities are not accounted for first.
Action Steps to Take NOW
1st Step: Audit your spending from the last month
2nd Step: Download this free budget template with video instructions
3rd Step: Write out your budget for the next month
Conclusion
No more suffering from the “Where did my money go?” syndrome. Budgeting is not a restriction to tell what not to spend but more of a guide to help you get the most out of your money. If you are avoiding looking at your bank account, avoiding bill collectors, overdraft fees you definitely need a budget.
No shame, because ya girl was definitely doing all the things. Budgeting has truly changed my finances for the better. I honestly do not know how I functioned in any form without one for so long of my adult life. Just know you are not alone in this journey.
Until next time dream, believe, and achieve.
Do you have a budget, why or why not?
