The day I found out I was pregnant with my first child, my mind started racing with all sorts of plans and thoughts. Of course, one on my main concerns involved money and the costs associated with a new baby. I also strongly desired to quit my job, take an extended leave, or work part-time as a new mom. I wasn’t sure what my options actually were, so I immediately began to analyze our finances.
I have to admit, I had never had a budget before this time. Amazing all the ways becoming a parent changes you! Immediately I began a process of creating a budget, analyzing our spending, and number-crunching like a madwoman. To make a long story short, I did manage to accomplish all of my goals. With an extended leave after my first born, working part-time between my two kids, quitting work after my second, and then eventually starting a home-based career as a writer and editor.
After these 8 years of tight money management, I started to realize something new just the other day. I was contemplating the last time I actually looked at my budget. I realized I had shifted from my strict planning process and wondered why? Then it hit me, it is because I no longer feel strapped for cash. Do I really need a budget when I don’t live from paycheck to paycheck? I decided this might be an interesting subject to explore.
Certainly a struggle with money is a motivation to budget. But what about when you have ample cash left over? Do you need to budget then? At first, when I was confronted with this question my initial thought was, why waste my time? Then, later that same day, my husband mentions to me he wants to change jobs. Arg… we finally get comfortable, now he wants to change. It did help me appreciate that having a budget would help us with these type of decisions. If you don’t have a budget, you don’t really know how much you are spending, if there are items that can be cut back, or if you have extra money to buy a new car or even switch jobs. When you don’t have a strong handle on your money, it makes it very difficult to make many family decisions.
A budget is also important for long range goals as well. Do you hope to move someday? Buy a home? Retire? All of these major financial decisions need to be planned for in advance. A budget will help you better appreciate how to save for and invest in just these types of goals.
Now, let’s ask the question again, how important is a budget when you aren’t strapped for cash? I am not sure your answer, but my conclusion is get back to my stringent record keeping… ASAP!
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