You may look at the title of this article and think… Really? How is not having money a good thing or beneficial? The idea that having a lot of money will solve all of your problems is faulty, at best. If you do not believe us, check out celebrity bankruptcies or spoilt kids who lose their families fortune in one generation. Having a lot of money and not knowing how to manage it is much worse than having a tight budget and having complete control your personal finances.
Below are some benefits outlined by a personal finance site for low income earners in Australia.
Minimal wastage: When you learn to live with less, you do more with less, which means you aren’t reckless with your spending. There is nothing wrong with wanting to spend money on vacations and fun things, but if you only focus on buying the latest and greatest, you miss enjoying the simple pleasures of life. You don’t waste time putting up a façade and pretend to be something you’re not.
Your life is less cluttered: Look around your house. How much of the stuff you have piled up do you actually use? If you live on a tight budget, you buy less, which means there are fewer things cluttering up your home. This makes for a more comfortable living environment and it means you have less to clean up! You’re not a consumption zombie with a household full of fantastic plastic and worthless junk.
Less stress: When you have to live on a tight budget, you are less likely to get in trouble with debt, mostly because you may not qualify for any loans or credit cards. If you are particularly careful, you can avoid debt completely. This means you can enjoy the money you do have without worrying about bill collectors breathing down your neck.
Can you imagine having a $4 million mortgage? If you can master your budget, you may have more freedom than some people with giant bank accounts may have. Sure, you may not be able to travel the world, but using debt to travel the globe is only fun until you have to pay the money back.
You get creative: When you do not have a lot of money to spend, you are often forced to get creative. Whether that means coming up with something edible from the leftovers in your fridge or creating a Halloween costume from scratch, you put your creative skills to good use.
Neither a borrower nor a lender: Count this one in the blessings column: If you are living on a tight budget, odds are good that you will not be fending off family members and friends wanting to borrow money from you. If you are strict with your budget and set money aside from savings, you may even have the freedom to help someone who really needs it without feeling stressed.
Easier estate planning: Money can make the nicest family members crazy. If you live on a modest budget, you can rest easy knowing your family will have little to fight about. If you teach your kids to live on a modest budget and save for a rainy day, you can help prevent drama at your will reading.
Having money is fine, but no matter how much money you have, not understanding the basics of budgeting will cramp your lifestyle.