Keeping a budget can mean the difference between financial freedom and insurmountable debt.
It is important when using credit cards to ensure that you pay the full balance at the end of each month, because if you only pay the minimum balance you will not only end up with a bad credit rating, but you will end up paying more in the long run in interest fees. Credit cards allow you to decide whether you would like to use them to save money, or to lose money.
For people who find the big credit limits that come with a credit card too tempting, then keeping a budget will be slightly more time consuming. If you pay for most things in cash then to keep a budget you will need to use an excel spreadsheet to create your own budget categories and set your own monetary limits. If you are a cash person, then it is important to ensure that you always keep your receipts because you will have to manually enter them into your spreadsheet each month, in order to keep track of your spending.
Keeping a budget is often an eye-opening experience for most people, as you will likely be surprised to see how much you spend on some purchases, and how some things really add up fast, like your two dollar morning coffee, which adds up to over 700 dollars a year. Seeing your yearly spending add up like that will likely cause you to change some of your habits, which can help you save thousands in the long run, and allow you to feel more financially at ease.