Budgets
Tushar Khatri
What is Budgeting ?
Budgeting 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.https://www.youtube.com/watch?v=6Ib-bdko5cE
Why is Budgeting important ?
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.
5 Reasons to have a Budget
- To set and reach financial goals. Once you understand the overall picture of your finances specifically, identifying how money flows in and out of your life, you can better see how to reach your financial goals.
- To plan for retirement. Though technically an aspect of building wealth, retirement planning is so vital to your future that it warrants special attention.
- For peace of mind. If you don't have a budget, you might not know whether you can afford a new flat-screen TV, a new car, or any other major purchase.
- Enables you to save for expected and unexpected costs. Budgeting allows you to plan to set aside money for emergency costs.
- Gives you control over your money. A budget is a way of being intentional about the way you spend and save your money.
Conclusion
In summation by budgeting, I can save up for my tuition and books for when I go to post secondary. Also, I can budget my expenses to make sure that I'm not spending a lot of money on entertainment, dinners, and spending money on more important and necessary things.
This was a great and helpful post, Tushar. I also try to budget, but my budget isn't set in stone, so I often overspend. You make some really helpful points that I could use in the future with my budgets. I especially appreciate the peace of mind point, because I often go and just buy something like a new video game without considering if I should or not. I usually try to stick to 50% in the bank, 40% for spending, and 10% for church.
ReplyDeleteThis was a great and helpful post, Tushar. I also try to budget, but my budget isn't set in stone, so I often overspend. You make some really helpful points that I could use in the future with my budgets. I especially appreciate the peace of mind point, because I often go and just buy something like a new video game without considering if I should or not. I usually try to stick to 50% in the bank, 40% for spending, and 10% for church.
ReplyDelete