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.
Why is Budgeting so 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.
Reasons Why You NEED a Budget
- It helps you keep your eye on the prize
- It ensures you don’t spend money that you don’t have
- It leads to a happy retirement
- It helps you prepare for emergencies
- It sheds light on bad spending habits
- It’s better than counting sheep