Tuesday, 20 January 2009

The benefits of having a budget

The most important reason for having a budget is because,

“A budget can help you achieve your dreams.”

Having a carefully planned budget and sticking to it is a tried and tested way of achieving dreams. Millions of people have done it.

Here are some common benefits of having a budget.

---You become aware of your income and spending habits.
you will learn where your money come from and where they go to.

---You take control of your finances.
you decide where and how you spend your money.
by planning ahead, you will not worry about whether you have enough money to last until your next paycheck.
you learn to control or cut out unnecessary expenses.

---Allows you to take advantage of opportunities.
by knowing your exact financial position, you can decide to take advantage of opportunities that you might otherwise miss. You will never wonder if you could afford something.

---You free up extra money.
If you plan your budget properly, you can do away with hidden fees, penalties and interests on late payments. This will result in extra money for you to use for other purpose.

---Communication tool.
A budget is a good tool to communicate financial information to your family and to resolve any personal differences which might arise. By involving your family in the budgeting process, everyone will get a chance to put forward their priorities, understand and compromise to come up with a budget.

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