If you want to increase the amount of money that you save then you will need to make some changes to what you are doing with your money. There are lots of different things that you can try and budgeting is one of them. But is it worth it? It is worth thinking about the advantages and disadvantages of budgeting so that you can work out whether you think that it is a good solution for you.
Helps you Organise Your Plans
Having a budget will be a useful guide that you can use to make sure that you are organised. It will allow you to be able to know how much money you have to spend on certain things and you know that if you stick to it then you will have money left over to put into your savings account. When you are wondering whether to buy certain things, it will be really easy to know because you will be able to look at your budget and see how much you have allocated to that particular area and how much you have spent to work out if there is enough money. You will then be able to easily decide whether to buy that item or not. If you cannot buy it, then you might be able to delay and buy it the following month, perhaps carrying over some money form that budget so spending less one month so that you have extra to spend the following month.
The main problem with a budget is that it is inflexible. So, if you get an expensive bill in that you have to pay then you may not have enough money for that or you may have to take money from other areas. If you have already allocated your money then you could swap it around a bit to pay the bill, but if the money has already been spent then you will not be able to do this. If you have budgeted well, then you should not be getting unexpected bills though. You should have remembered everything that you have to pay. It might only be if something breaks down or the car needs a repair that you might have extra money to pay out. A good budget would allow some money for this sort of thing though.
Could be Quicker
If you have a budget in place it could help you to save the money more quickly. If you are following a plan and have decided that you want to pay a certain amount of money into your savings account each month then you are more likely to stick to that than if you just decide you want to put more in. You might even set up a direct debit to pay the money in and then you will not forget to do it. This could mean that you will reach your target amount of savings more quickly as it will be much easier to stay focussed on the ask at hand and you will have a plan on how to achieve it.
It can therefore be a good idea to have a budget to make it easier to keep focussed on building up your savings. If you know what you can spend and what on, then you will be less likely to overspend and not have enough to save. If you have a goal but have not set a budget, then you could end up spending too much money on other things and not saving it. Even if you have to change plans a bit of you get unexpected bills in, it can still be easier than not having a budget.