What can a budget do for me?

Everyday Stewardship |

Come up with a plan to control your finances

Imagine going through life without a plan. Where would you be if you never set any goals, objectives or parameters?

I’m sure you can see how this would put you in a position to live life without much direction.

It’s like that with your finances too. Without goals, objectives or parameters as to how you spend your money, your finances often will be in a position to fail.

This failure to manage money has disempowered and increased the financial stress level among Millennials. A study conducted by Schwab found that 35 percent of Millennials experience so much financial stress that it affects their work performance, whereas only 18 percent of Gen Xers and 11 percent of Baby Boomers say the same.

This stress is not only attributed to the “student loan debt crisis.” Almost half of Millennials also carry credit card debt with averages totaling over $2,500, according to Credit Karma.

The time is now to set goals, objectives and parameters around how you spend your money. Give your money a meaning and purpose, and then protect it.

In a study done by Credit Karma involving 1,045 Millennials, the No. 1 reason why Millennials overspend is to keep up with friends. This consumerism mentality has taught us to abandon the very thing that gives our money purpose and direction.

Create a budget of your income and expenses. Knowing where your money comes from and where it goes can help you stop overspending, get you closer to whatever your financial goals are and put you in control of your finances.

Author

Bryant M. Keal
Community Development Officer

Understand your money

Where does your money come from, and where does it go?

Managing money effectively requires knowledge, and a key first step is to make a record of your regular income and expenses, along with reasons for saving money, such as education or retirement.

Download our free budgeting guide and our digital cash flow plan template to get started with your budget.

And talk to Everence for further guidance.

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