IMPORTANCE OF BUDGETING

[jesushappened]

In short, budgeting is important because it helps you control your spending, track your expenses, and save more money. Additionally, budgeting can help you make better financial decisions, prepare for emergencies, get out of debt, and stay focused on your long-term financial goals.

 

[Augusta]

Budgeting is very good tool to adopt whether as an individual or a business owner because it will save you from unnecessary spending. one thing about spending money is that you can never recover from what you have spent, it is gone and you would he left with nothing.

So if you an individual you need to have a budget of money you are willing to spend for a month, daily or weekly and you shouldn't go beyond that because it will hurt your account. To achieve this you should first list your needs in order of importance. Then do a scale of preference and go mostly for the ones that are most important for you.

Even as a business owner you need to budget for your business and work with it. employ numbers of people you can pay and let your liabilities be what you can handled and then you stop at that.

 

[Jasz]

Budgeting is a widely used practice in our financial life as it helps to keep track of the expenses and income on a regular basis. budgeting is also known as fiscal control which means control over the purchasing power of one's money. All companies of any size maintain budgets so that they can keep track of the profits and total expenses. Budgeting is important for all companies, big or small. However, budgeting is more important for small businesses because small business doesn't have sufficient capital to survive in the market.


Budgeting is important to keep a proper check on your expenses. It is an effective method of achieving financial stability and gaining control of personal finances. Budgeting may seem like an unexciting and time consuming task, but it is the surest way to meet your short- as well as long term financial goals. Effective budgeting helps you set priorities in terms of your monetary needs.


Most people have budget issues. Are you one? Even if you are not, but you are planning to start a new job, there is something important you need to know. Budgeting is actually an easy way of saving money. Every adult in the world knows that managing your budget is tricky, even with financial education. Being a smart person doesn't necessarily make it easier.

 

[Mellorando]

Let’s be honest, when you operate your finances without a budget, you don’t really have anything holding you back from spending beyond your means. Sure, you might have a general idea about how much money you can spend each month, but without hard, accurate numbers, it’s easy to lose control of your spending habits. I would know. Before I started budgeting, we spent money like it wasn’t a big issue. From going out to eat, to taking trips to the mountains, without a budget it was hard to correlate our daily spending to our less than optimal financial situation. I mean, sure, buying one lunch out to eat at a time doesn’t feel like a big deal in the moment. However, when you sit down with a budget and add up the cost of 30 Chipotle burritos each month (yeah, I said 30), those seemingly insignificant lunch bills add up to way too much spending.
In other words, budgeting is important if you want to keep a close eye on your daily spending habits, understand the impact of seemingly small expenses, and take control of your spending. Along the same lines of controlling your spending, budgeting is important because it keeps you on track when you are trying to achieve your financial goals. Let’s be honest, setting goals is pretty easy. Anybody can do it. You just think of something you want to achieve, and then set a defined timeline to achieve it. But here’s the thing, setting goals and actually achieving your goals are two very different things. In order to achieve a goal, you need to stick to a plan, and stay focused on a clearly defined process; and that’s where having a budget is so important. Through a budget you can reverse engineer your goals, and develop a clearly defined process to achieve them. In essence, when you create a budget, you are setting boundaries on your financial behavior so that you can stay on track and achieve every goal you set for your life.

 

[Good luck]

It is good to have good budgeting strategy.Especially in a new year like this.you need to draw your scale of preference and know how you will spend every income you make monthly and don't lavish your find unnecessary to avoid running out of fund.you must have a very good budget of your expenditure.Don't spend money on what is not needed.Buy important things that you need.Money has alternative use that is why you need to have budget for income.

 

[Kingsley]

Budgeting is a very crucial aspect of life for anyone that wants to be really progressive in life and also in business. The benefit of preparing a budget is so enormous in every sphere we look at it from. First budgeting helps us to focus our attention on those items that are more paramount to us as we will not pick items that are not so pressing ahead of other items that are of dare need to us. The same is applicable to governmental agencies and bodies that handles very big projects in a country.

Then budgeting also helps in curbing wastages that is the key function area of budgeting it helps us to avoid taken up projects that will not be of any benefit to to us or the organization in concern. Then without having a budget we get to spend somuch more than we are suppose to spend and at the end we might become broke because we must have used up more than we are suppose to use on irrelevant items.

This is one reason why our government in Nigeria is having some kind of challenges in managing the abundant resources we are having here, because they fail to have a proper budget or fail to implement the agenda on the budget.

 

[PICKFORD]

There is no doubt that spending money is interesting and sweet but because we live in a world where we face unforeseen circumstances and activities it is good to develop the habit of budgeting budget will help you to track your earnings to help you to know things that are necessary to buy when going to the market when in need of something when going to the market to buy something you must first of all ask yourself do I really need this or am I just buying it for formalities questions like this who help me to know how to manage your profit and your income cuz no one knows tomorrow weather the city you are might face a war crisis tomorrow or things what is known as inflation or economic crisis in a state of economic crisis or war spending will become very difficult that is why it's advisable to develop the habit of budgeting because when you budget you will know which money to spend and which amount of money to save for the future in case of unforeseen circumstances and for speculative motives. Someone who lack the habit of budgeting is said or assume to go broke in the future.

 

[btaliat]

Budgeting is not only good for monitoring our spending and lifestyle. It is still better when we are trying to monitor our income and expenditure. It is very essential for an individual to have budget to plan how he will be spending his expenditure and know how to generate income.

Human wants are unlimited. If we don't have budget, we may end up spending everything that we have. We need to know that not all what we want, we need to buy.

 

[Caramelle]

Budgeting helps us identify our priorities and goals and allow us to systematically allocate our resources to meet them. Making a specific list of our needs allows us to decide which items should be prioritized and which ones can wait. This can help us use our funds in the most optimal way. A budget serves as an effective control against spending beyond our means. It warns us when our finances are taking a bad turn and motivates us to work extra hard to fill a looming deficit.

I used to be too lazy to prepare a personal budget but this attitude has worked against my desire to be debt-free for life. Realizing the perils of uncontrolled spending, I started to treat my finances the way most companies treat theirs. I am currently using a spreadsheet to prepare my budgets as this allows me to get a clear overview of my targets, resources, expenses, and savings. Others are probably more comfortable with using budget apps. My non-accountant friends prefer financial apps that can be easily downloaded on their phones. I would say use what works best for you as long as it gives you full control over the way you spend your funds.​

 

[Kendy]

The importance of budgeting cannot be over emphasized. Budgeting helps one to know the way he or she spends money. I started out with the habit of writing down the list of things I would need on a monthly basis and keeping money aside for the miscellaneous that will arise. I write my list following a scale of preference and even with that, I still make a tick on the items that I would purchase first before others. The challenge is always that, each time I make a budget, I exceed my budget because of the high prices of goods and services is always on the increase. There is a lot of challenges regarding my budget because even the income I earn is not substantial to cater for my needs and this becomes an issue. There are some people who do not have a budget and they spend recklessly until they realize that their money has reached the collapse stage. There are so many advantages of making a budget because of the current economic situation, one must not live beyond their means else, it would be tantamount to requesting of loans and would likely end up incuring bad debts which would impede targets or goals to be achieved.

 

[Abigael]

Budgeting is a very important thing that involves planning how much money you spend and on what. Having such clarity will prevent impulsive spending and using your money on unnecessary things. This enables you to have a great financial stability.

The most important thing that budgeting does is that it helps you specify your needs and wants. Needs being those things that you cannot live without like food, shelter and clothing. While wants are those desires you have that you can actually live without like a car or a very expensive gadget.

When you budget, you are able to live within your means. You won't be able to fall into the temptation of buying things that you cannot actually afford. So you only settle on things that you have put on your budget. But remember that it takes so much self discipline to stick to that Budget. Which is something you learn by doing the right thing one step after the other.

Another thing that budgeting does is that it keeps you away from debt. That way, you will be able to buy things you need with the money you have and not take loan to satisfy your desires. In the end of the day, you will also be able to build a saving culture by putting aside the money that remains behind after you budget.