Mastering Budgeting Skills: An Essential Life Lesson

The importance of budgeting cannot be over emphasized in our daily lives and endeavors. Its remarkable and indispensable advantages far outweigh its disadvantages. In importance of budgeting essay this topic is discussed. A budget is an itemized summary of intended expenditure; usually coupled with expected revenue. Sometimes we hear people say manage your money well. Budgeting helps you to manage your money. As we all know money is hard to get but easy to spend. Thus, it is important we manage our spending with the aids of a budget. The following are the Importance of budgeting;

Setting of Goals and Objective 

Drafting a budget will help you set some financial goals and objective. When drafting a budget it important to state the goals you wish to achieve in the long run couple with the source of revenue to achieve this goal. Sometimes a budget will help us realize that we don't have any planned financial goal. We just spend our money haphazardly on irrelevant things .

Helps to Prevent Debt 

Many of us spend more than we earn, we just continue to buy luxurious things without considering if we can pay for it  with our monthly salary,  it is at the point of payment that we realize that after settling the bills with our salary, we are left with nothing and there by resulting to borrowing from friends to survive before the next salary comes.This is because we don't have a budget. A budget will explicitly state your intended expenditures and your expected revenue to meet those expenditure.

Retirement

Proper budgeting will lead to happy retirement. It is only when you budget during your productive age that you will have some money to rely on when you retire at your old age. Many people who were well to do before are now living in penury today, because the fail to budget for their retirement while the were working. Many youths today are still matching along this route. I advise you to inculcate the habit of writing a budget.

Emergency

The future is uncertain, you can tell what happened yesterday but can never tell what will happen tomorrow, therefore, it is important to budget for emergencies and unexpected events. Don't wait for it to happen and begin to run helter shelter looking for who will borrow you some cash. A good budget should make provision for emergencies in the future.

Checkmate Bad Spending Habits

Budgeting helps to give your spending life style a sense of direction. It ensures that you don't spend your scarce resources haphazardly. Bad spending habit can be controlled with the aid of a good budget. Wasteful and careless spending is reduced if not eliminated. More so, it can help you stop certain bad habits that you have been struggling with such as womanizing. It is a fact today that most youth spend all their hustle on women that the can never and will never marry.

Conclusion

Those who always tell you to budget your money are actually telling you the truth. Money is not easy to get, money is scares by virtue of its nature. Waste of money will do you no good rather it will leave you in a state of penury. learn to write a budget, make it a life style. Get smart and write a budget today.