While following a budget might seem limiting, when used as a guide, a budget can empower you to take control of your financial life and meet your money goals. Having a good understanding of your monthly saving and spending habits helps you make smarter financial decisions that can position you for success in the long run and reduce money-related stress.
Creating a budget may sound simple, but a flawed financial map can leave you struggling to reach your goals. Sometimes the collective everyday spending decisions you make have a material impact on your longer-term goals. Fortunately, a combination of tried-and-true practices and modern tools can help you find your way. And even if you’re already good about budgeting, it can be helpful to periodically revisit your plan and adjust your approach to spending to reflect your current situation.
Here are five steps that will help you avoid money-related stress and make smart spending and saving decisions: