• Skip to main content
  • Skip to primary sidebar
A Day In Candiland
menu icon
go to homepage
  • All Recipes
    • Breakfast
    • Appetizers
    • Side Dishes
    • Dinners
    • Dessert Recipes
  • Afternoon Tea Ideas
    • Tea Sandwiches
    • Tea Beverages
    • Scones
  • Summer Recipes
    • Fall Recipes
    • Winter Holidays
    • Spring
  • Tea Education
    • Tea Gifts
  • About
    • Contact Me
    • Guest Post Policy
    • Facebook
    • Instagram
    • Pinterest
    • Twitter
  • search icon
    Homepage link
    • All Recipes
      • Breakfast
      • Appetizers
      • Side Dishes
      • Dinners
      • Dessert Recipes
    • Afternoon Tea Ideas
      • Tea Sandwiches
      • Tea Beverages
      • Scones
    • Summer Recipes
      • Fall Recipes
      • Winter Holidays
      • Spring
    • Tea Education
      • Tea Gifts
    • About
      • Contact Me
      • Guest Post Policy
    • Facebook
    • Instagram
    • Pinterest
    • Twitter
  • ×
    Home » Family Encouragement

    The Purpose of A Budget: What is a Budget

    Published: Apr 28, 2016 · Modified: Oct 31, 2024 by Candi Elm · This post may contain affiliate links

    173 shares
    • Share
    • Tweet
    • Email
    • Flipboard
    What is the purpose of a budget

    The purpose of a budget is very simple. It is your roadmap from chaos to direction. It tells you where your money is coming in and going out.

    Once you know this you can create a budget to get you where you want to go. The importance of a budget can be the difference between living your dream and financial independence and bankruptcy and destitute.

    Purpose of a Budget

    Purpose of A Budget and Why you need one

    The best time to start a budget was when you got your first job or when you got married. The 2nd best time to start is today. Get your spouse on board, get out your bank statements and print off these budgeting sheets.

    My Money Story and Why I needed a Budget

    Just a few short years ago, we were debt-free except for our mortgage. We were very proud of that.  The Real Estate market was going crazy it was 2004. We decided to remodel our home. We started out small, but we were able to get a loan and it seemed like the banks were just giving money away.

    Before we knew it the market crashed and our newly updated home was not worth anything. In addition to that the business, we owned really slowed down so bills were high and our income was low. Does this sound familiar to you?

    I felt so guilty because I was the one who wanted to do the updating and this small renovation turned into this crazy renovation and now we couldn’t afford it.

    So what did I do? I turned to credit cards to pay the mortgage. Before I knew it we owed over $30k in credit cards. The guilt and shame was making me physically sick. I was worried about what it was doing to our marriage. I was angry, scared, worried about our business and our family. Have you ever felt this way?

    We thought this would be over (the financial crises) in a few months and business would get better but it didn’t.

    We chose to short sale our house and we moved and left my beautiful new remodel and started renting. We vowed to pay back all the debt and worked hard and in 5 years it was paid off. We were again debt-free. But our credit was not good.

    What is the purpose of a budget

    How To Change Your Money Mindset

    Now that is not to say it was easy. And it doesn’t mean there was not a lot of guilt I was still dealing with. I had a lot of shame. For some reason, I thought to rent meant I was not successful. I had a negative mindset although I was a positive person.

    I don’t believe that anymore, and I know almost all of my friends were really in the same situation but maybe not as forthcoming about our situations.

    One thing we did learn was why we needed a budget.  I also learned we need to be accountable to ourselves, and maybe a mentor or friend. I believe spending can be an addiction. I have always used a budget but if I wanted something I just thought, oh well, I just need to make more money next month. That sounds great, but it’s not realistic.

    I just finished reading Dave Ramsey, Total Money Makeover. I have read it in the past but thought I needed to brush up on it again. During the last 10 years, we weren’t the only ones with this financial problem, most of the population had some sort of set back. Many lost their houses, many lost their jobs. It was total chaos.

    You must learn from your failures and move forward. If I can help one person from my money story then it’s worth it.

    What is the Purpose of a budget!

    • Because you need to know how much money you can spend each month.
    • You need a plan
    • You need goals
    • You need to follow it
    • You need to continue education and a good mindset
    • A budget is a road map to wealth
    • Your money needs to work for you and not the other way around
    • You need to be in control of your money
    • You need to have an emergency fund

    There are different ways to set up your budget, and I will show you how we do our budget in the next post. But for now, I will tell you we use Every Dollar. It is a free software program on your desktop and smartphone.  Once you set up your budget, you can use the envelope system to help with your cash payments. You must be diligent.

    What are the benefits of a budget 

    • Helps you organize your money
    • Gives you control over your income instead of it controlling you
    • Helps you plan for unexpected emergencies
    • Creates budget goals and objectives for your future and retirement
    • Shows you if you need to create a side hustle or part-time job

    More about budgeting and finances!

      More Family Encouragement

      • How a Self-Care Planner Helps You Prioritize Your Health
      • Empowering Words of Encouragement for Women
      • Prioritizing Your Well-Being: How a Self-Care Checklist Can Help You Stay on Track
      • What is a Tea Ministry?

      Family Encouragement

      About Candi Elm

      Candi Elm is the recipe developer and food photographer at A Day In Candiland where she has been sharing Encouragement, Recipes, and Afternoon Tea Ideas since 2012. Candi currently lives in Southern California with her family and enjoying life to the fullest.

      Reader Interactions

      Comments

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Recipe Rating




      1. Crystal Green says

        May 09, 2016 at 2:02 pm

        I’m in debt. However, we are cutting our expenses. We have just recently traded our newer car in for one that we could have paid off completely. We’re tackling the smaller balances we owe one bill at a time until we get everything paid off.

        I have heard many wonderful things about this book and have been tempted to read it several times. I may break down and read it before it’s over with.

        Reply
        • Candi Elm says

          May 10, 2016 at 7:42 pm

          Thats great Crystal. I am going to see Crystal Paine along with some of his speakers this weekend at Business Boutique in Arizona. It is really hard at first at least for me, because I had to let go of my fears about what people might think of us if we didn’t have the best car or clothes. What I found out was that everybody was in the same boat, and I can’t worry about what people think, because they aren’t paying my bills.

          Reply

      Primary Sidebar

      I’m Candi, a recipe and all things Tea blogger. I create family-friendly recipes along with sharing encouragement in your daily life.

      More about me →

      Strawberry Scones
      Dessert Table for Mother's Day Tea Party. Filled with cake, tea, cupcakes and creamer bowl.
      Mother's Day Tea Party
      2
      Lavender Earl Grey Cupcakes
      Hibiscus Iced Tea

      Birthday Tea Party

      Lemon Poppy Seed Cookies

      Printables Shop
      The Teacup Story
      What is a Tea Ministry

      Popular

      • Garden Tea Party Ideas: The Complete Hosting Guide
      • Hibiscus Green Tea Spritzer
      • Iced Blueberry Matcha Latte
      • How to Throw a Beautiful Tea Party Birthday Celebration

      DISCLOSURE STATEMENT

      A Day in Candiland  is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

      Footer

      ↑ back to top

      About

      • Accessibility
      • Disclosure Policy
      • Privacy Policy

      Newsletter

      • Sign Up! for emails and updates

      Contact

      • About
      • Contact

      All content and photos are the property of A Day in Candiland. We love it when you share, so you may use a single image with a direct link back to the original piece of content. Republishing any content in its entirety is strictly prohibited. Please see our Privacy Policy for details.

      Copyright © 2025 A Day In Candiland