In a previous blog post, we discussed some of the common reasons that many people decide to start budgeting their money. If you currently aren’t on a budget, but have been considering the idea of creating one, the following are some common reasons why you might need to create one as soon as possible:
Whether you’re approaching retirement quickly, or you have yet to begin saving and want to start, retirement is motivation enough for many people to start a budget. Saving for retirement can take some discipline, especially if you’re many years of way from retirement age. But by creating a budget, it can be possible to begin saving for retirement when you’re younger, even if the contributions are minimal.
You got a raise
Receiving a promotion or raise at work means extra money, which can change your spending habits. Maybe you didn’t bother budgeting prior to a raise, but that added income has given you motivation to put money towards a larger goal. Whether you want to begin contributing towards retirement or begin saving for that dream vacation you’ve always wanted to take, sometimes an increase in income (rather than a decrease) can give people a push to create a budget.
Another common reason to start a budget is to begin saving money for an emergency fund. Emergency fund money can be used for any of the above situations, and it can be comforting to know that you always have some cash saved up in case the unexpected happens. If you’re unable to work or an unanticipated expense is thrown your way, having money in an emergency fund can be a lifesaver and possibly help you avoid getting into debt.
Improve spending habits
Money doesn’t have to be tight in order to start a budget, nor does there need to be a major life change. Many people start budgets because they simply want to improve their spending habits and be less wasteful with their money. If you’ve ever asked yourself shortly after payday where your money could have possibly gone, you can relate. By creating a budget, it’s easier to see how much you’re spending on certain things and what you can change. Eventually, this can help to improve your spending habits, since you’re more aware of where your money is going.
Do you need to take care of a large expense, or is there a big purchase you want to make? Whatever your goals may be, we want to help you reach them. At Peachtree Financial Solutions, we help payment stream recipients get their cash sooner in a lump sum. And when you work with Peachtree, you’ll also have the option to sell some of your payments or all of them. Contact Peachtree Financial Solutions today to learn more about selling future structured settlement annuity payments for a lump sum of money.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.