Why budgeting matters and tips to help you succeed

Budgeting is important, but if you already budget you probably know this to be true. Yet, if you are contemplating starting a budget, it is best to do some research and find out the budgeting basics so you can begin your budget on the right note and keep a successful budget. If you are already behind, don't worry, If you are feeling money stress from debt and bills, starting a budget will create a plan to help you get your finances under control. Often when we think of personal finance, we are not in tune with our financial reality. Hence the reason for overspending, credit card debt, and late fees.

In fact, like most things in life, if we do not track what we are doing and leave it to chance, things get out of control. This rings true for health, relationships, and undoubtedly money. Think of it this way, if you do not pay attention to what you eat daily, eventually you would begin putting on weight. So tracking your money is just as important, because debt can snowball out of control too. Also, keep in mind, money problems can affect health causing stress and anxiety. Therefore, creating a budget has important advantages for your financial health and can save you so much money over the years because you will pay less in interest, late fees, and overspending. Once you see your debt wiped out, you can start investing and take advantage of compound interest making your money work for you. When you decide to start a budget, tracking your spending will be key to creating a truly successful budget. If you do not know how much you spend, your budget will never add up. Tracking your spending is essential to finding where you overspend and making sure you have enough for bills. So grab a savings tracker and start writing down everything you buy for the next few weeks. You can even create this as a note on your phone to simplify the process and jot things down right after you spend so you don't forget. When you figure out your "spending" number, you can then subtract spending and bills from your incoming money. Another simple tool that can help is a budget planner. You can use a budget planner to track finances, debt-repayment, monthly and annual expenses. It is important to include annual expenses in your budget so you can plan ahead and put money away because let's face it, there is nothing worse than a surprise bill. Eventually, you will work your way through your budget and be able to put money away for an emergency fund. Once you have built up an emergency fund, you will not have to stress about these money surprises because you will be covered. You can also take a look at areas of spending you can cut and use that money to pay down debt. Most people find subscriptions they forgot about or don't use anymore are good areas to cut. As mentioned, it is extremely important to keep a successful budget. You will be able to pay down debt, save more money, and eliminate money stress. Finding ways to make more money and cutting spending will help and over time, you will eventually have a healthy financial life.

I'm Sarah, author of I Heart Frugal. I am a mother of two, wife, and personal finance blogger. My husband and I have paid off over $100,000 in student loan debt combined and enjoy saving money on everyday things so we can use our money to travel.