What Is a Budget? Do You Need One?
What is a budget and should you start one?
Do you really need a budget?
Find out below.
Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you.
Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.
A budget is the process of creating a plan to spend your money.
This spending plan is called a budget.
Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.
Why is budgeting important?
It helps you prioritize your spending according to the most important or stressing issues.
For instance, if you don’t have enough cash to do the things you’ll like to do or pay for the things you would like to pay for, then you can use budgeting to prioritize your spending and focus on the things that are most important to you.
Since budgeting your money lets create a spending plan for the things you want to buy, you can be rest assured that you’ll always have enough money to buy the things you need that are most important to you.
When should you start budgeting?
Now. You surely have things you want to buy and chances are you don’t have all the money to buy those things.
So you should take out a pen and paper and start budgeting.
Which among those things you want is most useful to you?
Asides from your basic needs like rent, food and transportation (I’m assuming you already have shelter), which you must have budgeted for already, what else is most important to you and which can you forego?
Let your most important want be at the top of your list and if at the end you don’t have enough money to buy the thing you want least, you will not worry too much about it.