Budgeting Reasons to start Budgeting

Getting started with a budget and tracking your finances might seem onerous and time-consuming but there are many reasons why you might find starting a budget useful. Our team have put together the top ten reasons for why you might need a budget:

Pay Day to Pay Day Fatigue

If you’re fed up with the stress of living from pay day to pay day, it might be worth starting a budget. Planning how you will spend your money may help make sure that you have money towards the end of the month for those unexpected expenses.

Building up Savings

It’s always a good idea to put money away for a rainy day. Creating a budget which includes savings can help give you the discipline to save regularly. Being able to see your savings grow can be really motivating.

Planning a Wedding

If you’re planning to tie the knot and have special plans for your big day, now might be the time to put a budget in place. When we got engaged, this was when our budgeting journey began.

According to hitched.co.uk, the average cost of a UK wedding in 2023 was £20,700. So whatever your plans are, it’s a good idea to put together a budget to help you keep costs under control.

If you're not sure where to start, we've put together some top tips for creating a wedding budget and keeping your wedding spending under control.

Applying for a Mortgage

Planning to buy a house and apply for a mortgage is another reason to start budgeting. Tracking your finances will help you to evidence your income and outgoings to your mortgage advisor. It will also help you to understand the impact of any mortgage repayments on your monthly budget.

Extending your Family

Welcoming a new bundle of joy into the family is an exciting time! Your financial situation will inevitably change but putting a budgeting plan in place will help you to manage any extra costs.

Since starting a family in 2013, we’ve been tracking the costs of raising our boys – www.costs-to-expect.com for our take on the costs of raising a child in the UK.

Starting a Business

Taking the plunge into self-employment can be a mine field. We know from experience that income can become unpredictable, especially if invoices are late! Using a budgeting app to create an accurate budget can help you to prepare for the financial uncertainty of self-employment.

Approaching Retirement

Retirement is a stage of life which everyone should be planning for. A reduction in income may be unsettling but starting to plan for it now, whatever stage you’re at, can help to ensure that you’ll be financially comfortable in retirement.

Control Impulse Spending

Creating a budget and tracking your expenses will help you if you’re in the habit of spending impulsively on things you really don’t need. Having a budget helps you to stop overspending and keep control of your money.

Prepare for the unexpected

Life is full of surprises and having a budget can help you to be prepared for life’s curve balls, which otherwise might leave you panicking. So whether it’s an appliance which needs to be replaced, the car needing repairs or even a divorce, having a budget can help prepare you for the unexpected events that creep up on us all.

Staying out of Debt

We’ve said it before and we’ll say it again: Budgeting is about making a plan for your money. And with a clear plan for your spending, you’re more likely to stay out of debt. However, if you are already in debt, having a budget can help you to control spending in order to pay off loans as quickly as possible.

Whatever your reason for wanting to start a budget, Costs to Expect have a Free Budget App that can help you get started or you can make use of our 30 day free trial of Budget Pro.