Personal budgeting helps in managing personal finances. It helps in making proper plans related to money and provides an effective way to control our expenses.This article discusses the importance and benefits of maintaining a personal budget.

Setting up a personal budget is of great value and importance in dealing with your financial matters efficiently. A personal budget is a finance plan that aids you in allocating your personal income and expenses, while it enables you to save money and make debt repayments- if any. Personal budget gives you correct picture of your current financial position allowing you to control your expenses. It is thus preparing a personal budget regularly makes your life easy and less stressful.

Having been associated with the field of economics, the concept that we can spend money we have let us know the importance of budget and controls. It is through budgeting process you can make personal financial planning effectively and learn how to deal with various issues relating to your financial matters successfully. Personal budget not only lets you meet your everyday expenses, but also allows you to have some provisions for unexpected expenses that may be incurred in the future.

A personal budget, on the one hand, showing you all your sources of earnings motivates you to increase your sources of income in case you are unable to meet expenses or you need to spend more than you earn in a particular period of time, it enables you to control your expenses on the other.

Since it provides you a true financial picture, you are able to discover the ways of making more savings. In this way, you will be in a position to establish your personal goals directing yourself in their achievement successfully.

In your everyday life, you need to focus on both the aspects, such as, inflows and outflows of cash in order to live a satisfying life, a personal budget allows you to monitor outflows to take necessary actions accordingly. Since you are enabled to track your expenses easily, you can evaluate if you are spending unnecessarily. Hence, all that you need to do is to prepare a personal budget regularly and being stick on it.

Written by:

K. A. Fareed (Fareed Siddiqui)

Writer, Trainer, Author, Software Developer

BBA, MBA-Finance, MPhil-Financial Management, (PhD-Management)

MA-English, MPhil-English

Post Graduate Diploma in Computer Applications and Programming

Level 1 - Leadership and Management ILM – UK

Pursuing CMA-USA

Individual Member of Institute of Management Consultants of India

FAREED SIDDIQUI

I am an Individual Member of Institute of Management Consultants of India. I am a Professional with a high creative capability based on Business, Management, Financial Accounting, Management Accounting, Finance and Management Consulting Field. I impart part time training and development programs. I write professional articles on business & management, business English and Software Engineering.

Related Articles

1

1.86K

Advantages Of Entrepreneurship For Individual And Socie

Entrepreneurship entails risks, but its advantages are far too enticing to ignore, both for the entrepreneur as well as for the society. Nothing creates personal wealth like entrepreneurship, and nothing helps the economy as it does.

0

1.26K

Importance Of Income Statement In Decision Making Proce

There are a lot of benefits of preparing the income statement in a business entity. It gives a clear picture of a business pertaining to its profits and losses.

0

854

The Importance Of Connectives In Business English Commu

Communication is one of the most important soft skills of an employee. Regardless of age, gender, background, or of the position and experience that one holds in an organization, it is important for an employee to have either developed or to improve effective communication skills.