Coming up with a budget may sound difficult, and sticking to a budget may seem nearly impossible, but neither of these things has to be that way. The thought of budgeting can be a drag, but once you have one in place, and start to form healthier spending and saving habits, it will get easier to follow.

Here are some ways a budget can help you:

  1. Find your weaknesses. When you force yourself to sit down and look at where you have been spending your money, you will probably realize that there is a lot of room for improvement. Small adjustments can mean big savings in the long run. Tweaking a few habits, like shopping or going out to eat, can make a major difference in planning for your future.

  2. Cut back on unwise spending. This is clearly one of the most important advantages on sticking to a budget. If you hold yourself accountable for where you are spending your money and how much you are spending, you will be far less likely to run up credit debt. Striving to stay within your means each month will help keep you from overspending and ending up drowning in debt, with interest piling up to boot.

  3. Meet your goals. If you are hoping to purchase a home or go back to school, or want to reach some other lofty accomplishment, budgeting will help you get there faster. You may really want a new sweater, but do you need it? If you have a monthly budget laid out, you will be less likely to spend on things you do not really need, which means more money in the bank, and you reaching your ultimate goals sooner.

  4. Prepare for emergencies. Life happens, and sometimes it can blindside you, and leave you with expenses that you did not see coming. Illness, a death in the family, a car accident… the possibilities are endless. When you are carefully budgeting your money, part of that is setting money aside for these types of emergencies. When tragedy strikes, the last thing you want to have to worry about is money, and an emergency fund can help you avoid that.

  5. Enjoy your retirement. The more money you can save now, the less you will have to work in your golden years. If you want to eventually reach a point in your life when you can spend your time relaxing, traveling and maybe spending some time with your grandchildren, rather than wasting your time working, then you need to be saving now, no matter how old you are. You will be glad you did.

  6. Relax and sleep well. Looking forward to retirement is nice, but sticking to a budget will help you relax more right now as well. Financial woes are a major cause of stress for a lot of people, and having less debt will definitely help you to be less worried in general. Bills will get paid on time, and you will not have to wonder where your next house payment (or meal) is coming from.