Why do I need a budget?

Money management is a vital skill that we can all benefit from having. Being able to effectively manage your finances and budget can help minimize debt. It also reduces your money worries and gives you peace of mind knowing that you will be more financially stable over the upcoming weeks, months or even years.

Understanding your cash flow is vital when you’re creating budgets. You need to be aware of how much money is coming into your bank account and how much is going out each month. In other words, how much you’re earning compared to how much you’re spending.

Budgeting helps you to identify the money you have available to spend on life’s luxuries and makes it easier to save money if this is your goal.