Does Budgeting Actually Save You Money?

I think for a budget to actually work, you need to be very DISCIPLINED and stick rigidly to it. After all, it is really about how you divide up your money for different expenses throughout any given month. I would imagine that most budgets include savings, of course money permitting! -and then of course you have other things you may not have expected to happen like the washing breaking down on you, your laptop packing up, bereavement, illness etc (and Sod's Law dictates these things happen in threes LOL)

BUT then those who're very good with money would argue that you should have within your budget a separate "rainy day" bank account to take care of your emergencies. It's all very easy on paper, but in practice not so easy to implement if you're already having to rub two pennies together or worse still, you don't actually have two pennies to rub together

 

A budget doesn't give you more money or create more income but I guess it's good to track your spending and know if you are wasting money on anything extra.
I think finding ways to bring in more money is more important than a budget.

 

A budget helps you save money because you are carefully planning and watching your spending, but a) you have to be disciplined and stick to it and, b) your budget has to include an amount to go into savings you don't touch as well as some money you can dedicate for entertainment or a small purchase. You can make that entertainment money go further by not spending it every week. That way you can do more with the larger amount by waiting to use it. This also keeps you from breaking your budget and spending more or making impulse buys and splurges.

 

Budgeting works, but it's the way on budgets their money that matters most. For example, saving a certain amount of money in a different account for investment [not the same as a savings account for personal leisure] per month after all debts have been paid, will always result in the same amount being saved next month - so why not double the amount one saves every three or more months? Of course, many will say that eventually one would hit a point that he/she can no longer double their savings amount after a certain amount of time, but the whole point is to inspire one to find new ways to earn more revenue to give back to self! Most people simply have a checking and savings account, but with a in depth look at this process of budgeting, it will always result in you simply getting by in life regarding finances. This is why creating another account to invest in self, is important to creating wealth, because it invokes one's mind to continue finding ways to fill this self investment account for it is rewarding and giving back to self - if one doesn't invest in their selves, what's the point of doing all the hard work one has done?! To "not" invest in self, will only result in failure to self.

 

Yes, budgeting is an excellent way to save money. If you are not accounting for the comings and goings of your money you will be spending and not even really know where it going. Budgeting allows you to set limits for what you need to buy and what you need to save to keep your finances in check

 

A budget is nothing but a plan on how money is spent and up to what limit. I think budgeting can only be effective if the person is thrifty and can stick to it. You can't really save if you're an easy spender and you buy expensive things even if you're "on a budget". That budget allowance may be expensive in the 1st place.

 

Budgeting makes you aware of ways you may not be making smart choices when spending your money. Things that you may be doing that keep you from getting what you really want like spending almost $3 for a cup of coffee that you can make at home for less than $1. I budget to be more aware of how much I spend on items like food. Sometimes you can go into the store and just pick up stuff and when you get home you look at the item and wonder why you purchased it. If on a budget you will think more about what you are picking up and what you will do with it when you get it home.

 

Budgeting helps you discipline yourself with money. But it really depends on what type of structure you have around it to make sure it works. You're trying to make sure you have in place good habits and behaviors in your approach to money, so you've got to embrace the principle for it to be a success. And you also don't want to feel like you are being penalized either - in other words, you've got to try to enjoy life while budgeting.

 

I always thought of budgeting as a way to manage your money 'better.' Sure you can save money while budgeting but primarily you're really looking at how you can stop spending money so freely because you have it. You wonder why you don't have the money to pay a bill and think 'Oh yeah, I bought ..... last week."

 

I absolutely believe a budget helps you save money. Well, as long as you know how to budget properly. I have learned most of my budgeting techniques from Dave Ramsey programs. His famous budgeting technique forces you to plan out a month in advance, and give every budget item a name, and money allocation. If you want to save $500 in a month, give it a name in your budget, and make sure you follow your monthly plan. At the end of the month you will have $500 saved if you budgeted properly.

 

Budgeting is definitely the key to saving money. You're setting limits to certain things that you spend money for. Making a budget plan is good because you're not depriving yourself of anything, but you're only getting what's necessary for you.

I constantly budget, and I know that if I didn't, then I'd probably be broke right now.

 

Budgeting does save me money. Yes, the amount may not be that much but compared to not saving at all, the amount I was able to save can still make a difference. Some people think it's an easy task to manage when actually, if you're not disciplined enough, all your efforts will be for naught. Many people who've become financially free all got to that level through knowing how to budget.

 

I think budgeting does save you money because it allows you to see how much money you have. I have to budget I am useless otherwise. I like knowing what is coming out of my bank on a monthly basis, that way I make plans for fun things to do, we all need fun things . Knowing how to budget is important.

 

I think it helps, because if you don't keep track of what you're spending, it's very easy to spend more than you should. Money can get away from you quickly, if you don't pay attention. A good example (from another thread) is people who don't have a grocery budget and just toss whatever into the cart, not even counting as they go. That adds up so fast. I can't imagine how much more I'd spend if I did it that way, and groceries are a pretty big expense each month to "just wing it."

 

I'd be willing to bet the people you see doing that are buying their groceries with a credit card. I know folks like that who don't look at or care about what's on sale and refuse to use a coupon, which I find ridiculous. If you're not affluent, you should take more care with your spending. Some people just don't get it, I guess.

 

It's even worse if buying on credit. I really don't get it. Even if you have a lot of money, there's no point in wasting it. I don't understand people who are quick to turn their noses up at saving money. Maybe it's about insecurity. They don't want people to see them as "poor" or "cheap," I guess. I'd rather been seen as cheap than be seen as throwing money away.

 

Of course it saves you money - if you know what you're doing, and if you stick to your budget once you have actually made it. If you don't bother to stick to it, of course, then there is very little point in having the thing in the first place. Make sure you're budgeting for things that you actually need, rather than trying to persuade yourself that certain things are essential when they're just not at all. That way, you know that any money that you spend is money that is needed, and that it isn't just being wasted completely.

 

Budgets (in my mind) are useful for examining your financial picture and as a reason to track spending closely. Tracking spending is only useful if you identify EVERY small item and expense that you spend money on. As you track spending, preparing a budget can let you see the plan. That plan is useful to examine but it only helps you SAVE money if you actually identify places where you can cut costs and cut them.

Not everyone will cut the budget as sharply as some people. And sometimes, people's priorities are different so what is a luxury that some people are able/willing to cut out might not be for others. For instance, part of our budget goes towards travel and tourist type activities (i.e. kayak rental or horseback rides on the beach or zip line tours). Many would cut that out if their budget was tight. Those things are important to us though. To make room for that, our clothing budget is very low and we completely eliminated one vehicle (removing a whole car payment and all of that insurance). Others place more importance on new/in-style clothes or simply can't manage with only one car.

 

I like having a budget because it helps me to allocate where my money goes and helps me to not be broke at the end of the month, but I have never found that it actually saves me money, unless it is in the form of not having to pay an NSF fee or a late fee. You have to be careful of those because they could cost you thousands of dollars in the long run.