Have you ever been wondered how much you have earned all these years?
If your answer is no, then go through how much money you have made till now. According to the annual income survey conducted in 2019 shows that average earning per year is roughly £30,000. Isn’t it enough?
Yes, it may be, but still, the average UK’s household debt is £58,540. It includes every type of debts including mortgages. It clearly reflects that there is a disconnection between what you earn and what you keep.
Do you know the reason behind this fault? It is “Poor Money Management” that creates a difference. Those who do not follow the financial plan or any type of money directing technique face such type of scenarios.
There are many disadvantages of not following financial planning. We have discussed 4 major ones in this blog. Let’s have a look at them.
4 The Downside of Not Following the Budget Plan
Poor management can put you into various money problems. Read them, and know the importance of it.
Finance becomes a challenge during the unstable market condition
It is the fact that financial condition is not going to be similar all the time. Many such situations occur where you need quick access to money to recover the situation. It may be medical emergency or inflation, to cope up with the money is need.
You can only prepare for it if you have a financial plan. However, there are some methods like borrowing from friends or take assistance with doorstep loans available in the UK market. In these types of loans, you may receive the funds at your house without visiting any loan company.
With the above-mentioned ways, you can manage the situation only once. So, budgeting is important.
Missed Opportunity Because Of Poor Planning
Many such opportunities occur where you have to respond fast. Now, it depends on you that in one moment would you capture it or let it slip. For instance, you want to do small courses but when you check and find that you do not have sufficient money. It is the place you lose the chance that may change your life.
There are many more cuts where people fail to grab the prospect just because “THEY WERE NOT PREPARES FOR IT”. For surprises, you should ready yourself to embrace them.
It is another pitfall of not having the budget. If you have planned for it and save money in advance, then you can avoid such type of scenarios.
People generally committees a big financial mistake just because of speedy decision. It is also known as an emotional decision-making process. Making a big money decision means you have to provide enough time so that you would not regret in the future.
It happens most when people do not prepare for their decisions. And these choices made on the basis of the distortion of thinking, and the influence of others. So, especially for the big money decision, you have to prepare for it. Discuss with your family member or friends so that it won’t take you to the wrong financial decision.
Fail To Save Money For Long Term Goals
Everyone in this world walk with some dreams. It can be short term or long term but you have to follow the proper strategy to achieve it. Without proper planning, you will not able to save money and which eventually ruin your dreams.
Saving money should be top on the priority list. It does not matter how much you earn, if you get 100 pounds, try to save £10 from it. And never spend money before you saved it. Even the world richest man said: if you want to get financially stable life, and then save money first, then spend it.
These are the foremost negative sides of not having the budget. To avoid such type of situation creates a money management strategy.
It may be difficult for you if you don’t know how to create an efficient financial plan. But with the time you will learn the importance and once you get habitual of it, everything becomes easy for you from saving to spending.
Now, what resists you to make a Budgeting plan? Go and make one