Need of a good budget

As soon as I got to learn about budgeting the first question in my mind was ‘do I really need to do budgeting?’ The answer was yes! I will explain you that in a comprehensive way.

Most of us earn money from salary and a few from business. Either way it is no easy job. Some of us work at corporates, some for government, and some run their family businesses like shops, small manufacturing or  are working professionals like doctors,lawyers, coaches etc. Each type of career has its on challenges and associated risk with it which makes it hard to earn money. Now think that if earning money can be this hard then why spending the same is so easy. One need to work hard for whole the month to get a pay cheque and it doesn’t take even 3-4 days to exhaust it completely making you wait whole the month to get another pay cheque. Moreover you don’t get your tasks done, you don’t get to achieve your financial goals. A student who is pursuing this graduation in some expensive city far away from his home and have to survive there only with the pocket money given by his family will soon be out of money if he/she doesn’t plan the use of it. And that’s what makes budgeting an important aspect of your financial journey.

Advantages of a good budget

1. It keeps a record of your earnings and expenditure.
2. Helps control excessive spendings.
3. Helps you to satisfy your financial needs and achieve financial goals e.g. car, home, wedding, children education etc.
4. Helps you in making investment decisions.
5. Put each of your penny to work.
6. Helps in allocating your money resources effectively
7. Tracking your financial progress
8. Helps plan your early retirement and holidays
9. Helps create and manage your emergency fund.

It is well said that “A friend in need is a friend indeed”. It is also applicable to your money. Your money will always be with you in the hour of need. Some people say that money is not everything but on contrary it is also true that if you have money with you then around 90% of your problems are readily solved. So don’t let your money slip our of your pocket unknowingly.  Plan it carefully toward your needs, happiness, investments and other life goals.