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

0

609

The Need And Importance Of Employee Competencies In Bus

It is important for a business organization to ensure time and again that its employees are competent and up for new challenges. The competence level of each employee contributes greatly to the total organizational development and competencies. .

0

222

Will I Be Able To Buy A Block Of Land To Build A New H

Buying property whether it is a house or a block of land is not as easy as one may think. In reality, location of the property and the price do matter.

0

10.89K

Profit Maximization - Merits Of Profit Maximization

The advantages of profit maximization is that it creates a cash flow and therefore investors become interested in companies that are maximizing their profits. It is one of the core objectives of a business organization..