Importance of Budgeting

Hello friends
I'm back with another video
On this post we will be discussing about Budgeting.

• What is budgeting?
• What is the importance of Budgeting?
• What are the benefits of Budgeting?

Budgeting

When we talk about Budgeting, it means to spend money based on plan, and it must be within income.
Before making budget, one must know how much he is making daily, weekly, monthly, so that you will not spend more than your income.

Again you must know how much you want to spend over a period of time.

Why Is budget Important?

Budgeting is important because it keeps your spending in check and helps you to track your savings for future. Teachers are fine example of Budgeting.

One of my uncle was a teacher—now retired. He said that once he receives his salary, he will removes his monthly savings, removes his transport money for the month, removes for his family upkeep, give his wife money for food and her own upkeep. After he has done this, the remaining is for emergency and nothing will make him spend it anyhow.

It is important to make list of what you need first before your want. With your list, you will know how much you want to spend. Even the Holy book encourage us to calculate what it will take us to build a house before starting it. This shows how important it is to budget before spending.

Benefits of Budgeting

• Provide target for growth
• Improve focus
• Manage cash in a good way
• Monitor progress and performance in a business, and also,
• Allocation of money in a required sector
  you can now see that, without good budgeting, one can run business for years without achieving anything.