Importance of budgeting

[Davidvictorson]

There is no successful person or company that doesn't budget. Budget is to a person what risk management is to traders. I developed the budgeting habit from my house and it has been helping me to stay financially upright. There are mini budgets I make from my main budget. I don't always get it correctly but I would have lost money to some vanities if I didn't budget it.

[summonerrk]

There is no successful person or company that doesn't budget. Budget is to a person what risk management is to traders. I developed the budgeting habit from my house and it has been helping me to stay financially upright. There are mini budgets I make from my main budget. I don't always get it correctly but I would have lost money to some vanities if I didn't budget it.

Yes, a budget and knowing all your earnings and expenses is very important! Some people keep a budget on paper, manually writing down all the values ​​on paper. Some, like me, write everything down in an application, which can then display all the expense items in Excel, and it's very beautiful and convenient. And some people write everything down directly in Excel, but I think that applications are more convenient. In any case, all this has only one conclusion - such a calculating guy, although he should force himself to develop a habit of constantly writing everything down after each purchase, will be free from doubts that money disappears somewhere on its own.

[Promocodeudo]

Budgeting is very important for everybody that makes money, including companies and governments. So far you are getting money on a regular basis there is need to have a budget for how you spend the money. Even when you are gifted money that you didn't plan for, there is still need to make a budget so that you don't waste it on things that are not important to you. The simplest definition of budgeting is having a plan on how to allocate money so that you will not misuse it.

It is said in economics that human wants are insatiable so you have to know the difference between wants and needs. As human beings we want many things that we can't afford so we have to focus on our needs (essentials). Then we have to prioritize the 'needs' and the most important one is the first to be allocated funds to, then the second and down the hierarchy.

It is the same for business people and governments, they have to start from a planing stage and arrive at allocating funds according to importance of their expenses and projects.

Budgets requires discipline, what does not fall into the plan should be carried over or suspended. You can add other importance of budgeting that you know so that we can all learn from each other.

Youre on point, budgeting helps individuals to achieve things in life, budgeting for me is a strategic planning, it involves individuals or institutions making estimate on to expense their funds according, there's no company or person that progress without budget that's why once a company reach the stage where they won't be able to accommodate a cartain number of workers, they decide to cut down cost through retrenchment of their workers to enable them function optimally.
I love the definition you gave about budgeting and I think you're very right on that, in the aspect of want and need as you mentioned, I think as rational humans, thing we want are very versed and thats why we should first and foremost tackle the needful first before going further, thses words are very logical, we can go on and on but I think am satisfied with my comment so far.

[libert19]

...Then we have to prioritize the 'needs' and the most important one is the first to be allocated funds to, then the second and down the hierarchy.

In prioritizing needs, I have come to understand that ones that you can't live without come at first — so, food and water are on top, then shelter and clothing; these are basically what one needs for sustence and everything else is want...and in terms of wants, those that improve one's quality of life should be fulfilled first than other wants.

[SmartGold01]

Budgets requires discipline, what does not fall into the plan should be carried over or suspended. You can add other importance of budgeting that you know so that we can all learn from each other.

Budgeting is one of the most important thing we should do and control over the period of time if we must have a proper financial planning. Budgets is something every family, firm institution be it the government regularly does for them to carry out projects, as they wouldn't embark in every project without costing before funds allocation to the project to be carried out. Most people do not have target or budget to what they want to use their money for, they spend money in an unnecessary things with the undermining if that is important to them or not. Cutting costs is one of the most important to maintain a long term financial goal.

[reagansimms]

I really appreciate your effort in bringing up a topic like this as it will be very helpful for beginners in making a basic plan for investment or something. In economics, budgeting is a basic step in doing something related to finance, if described more broadly, it can be interpreted as initial capital. Your initiative to raise this material can be used as a repeat or reminder for those who want to go further in anything. Without budgeting, everything planned will be in vain.

[Stablexcoin]

I really appreciate your effort in bringing up a topic like this as it will be very helpful for beginners in making a basic plan for investment or something. In economics, budgeting is a basic step in doing something related to finance, if described more broadly, it can be interpreted as initial capital. Your initiative to raise this material can be used as a repeat or reminder for those who want to go further in anything. Without budgeting, everything planned will be in vain.

Budgeting is not exclusive to beginners alone, when it comes to finance, there is no beginner all should pay attention to the test. Budgeting is an important part of every individual with expenses to sort out, sometimes there is no need for explanations, as our brains automatically teach us to do it correctly.  There are various ways that people have made financial mistakes from when they had enough to losing everything due to wrong budgeting, everything in our budget should be in order of importance, one most followed rules to keep a budget and get the right result.

[CageMabok]

I really appreciate your effort in bringing up a topic like this as it will be very helpful for beginners in making a basic plan for investment or something. In economics, budgeting is a basic step in doing something related to finance, if described more broadly, it can be interpreted as initial capital. Your initiative to raise this material can be used as a repeat or reminder for those who want to go further in anything. Without budgeting, everything planned will be in vain.

The basic budget must also be larger if someone wants to target a much greater profit even though it is only a few percent. Because a capital of one hundred million with a capital of one billion will have a different amount of profit even though both are only at five percent when taking profit. So the basic budget must also be really good so that the rotation itself can be much easier to do and besides that everyone who is just starting a business must also seek basic knowledge in terms of how to manage their capital and how to use it for more important things so that the business capital can be channeled on the right track.

[Akbarkoe]

Without clear budgeting, this will cause an imbalance between income and expenses, which will ultimately lead to bankruptcy. and this is what makes budget planning very important. and this does not only apply in the business world or in a government agency, but also in our daily lives. Because without a clear budget, while for income we only rely on the salary we receive every month, maybe the wages we get will never be able to meet our needs for the next month.

And I agree that we must be able to distinguish which needs and which are just wants. Because don't let us prioritize wants over needs. In addition, we must also be able to appreciate every plan and decision we have made, because sometimes when we already get money, we forget about the plans that have been made, which in the end the money we get is used up for things that are not very important and forget the needs that should take precedence.

[Egii Nna]

It is said in economics that human wants are insatiable so you have to know the difference between wants and needs. As human beings we want many things that we can't afford so we have to focus on our needs (essentials). Then we have to prioritize the 'needs' and the most important one is the first to be allocated funds to, then the second and down the hierarchy.

It is the same for business people and governments, they have to start from a planing stage and arrive at allocating funds according to importance of their expenses and projects.

Budgets requires discipline, what does not fall into the plan should be carried over or suspended. You can add other importance of budgeting that you know so that we can all learn from each other.

Budgeting is one of the topics that has been discussed many times in this forum, which is one of the vital methods to follow in order to achieve a very good outcome, and it will make you track your income and also your experience, which will pave the way for you to your financial freedom.

Your are talking about wants and needs, which I personally discovered about it some years back. But still, one of the things that people don’t know the differences is their need and want, which if you don’t know about that you will end up having challenges in your budget, because it will be very hard for you to achieve success without knowing what you really want and what you need, as budget is not meant for knowing how you spend your money, but paving your way to succeed. Because is only by budgeting that you can record your needs and save the remaining money left from your income for other expenses, and the same money can still be use for investment.

Even government and organization reasons for budget in because of future growth not just to know or track their expenses.

[indah rezqi]

Without clear budgeting, this will cause an imbalance between income and expenses, which will ultimately lead to bankruptcy. and this is what makes budget planning very important. and this does not only apply in the business world or in a government agency, but also in our daily lives. Because without a clear budget, while for income we only rely on the salary we receive every month, maybe the wages we get will never be able to meet our needs for the next month.

And I agree that we must be able to distinguish which needs and which are just wants. Because don't let us prioritize wants over needs. In addition, we must also be able to appreciate every plan and decision we have made, because sometimes when we already get money, we forget about the plans that have been made, which in the end the money we get is used up for things that are not very important and forget the needs that should take precedence.

Budgeting is one of the keys to achieving goals. In a smaller scope such as a family, it will bring a lot of happiness. If the source of income only depends on a monthly salary, which is already measured, then budgeting really must be considered very well. Setting a scale of priorities, by separating needs and wants is a must, although it must be admitted that in today era it is quite difficult to do. There are many incentives that sometimes make us spend money, especially from social media. With the price of basic necessities continuing to rise, sometimes a monthly salary is not necessarily enough to cover all needs.

[Oluwa-btc]

When you don't make financial budgets, you will end up in financial crisis because a good budget planner will be successful and can achieve financial freedom. Budget will help you spend within your income and also help you prioritize your needs first before any other thing. It controls you on how you manage your income and have something to save at the end of the day.

One needs discipline and contentment in order for him to be able to excute his budgets successfully and achieve his goal.

At this junction you have to understand that budgeting is required from the individual and enables them achieve a particular goal that's is impossible., then I use to think budget is not good not until I fell into that category. Just as they say failing to plan is planning to fail which is the main reason for budgeting regardless it's important to make budget and decisions on things pertaining growth. Budgeting is a game changer by all means which is why you get results by doing so.

[passwordnow]

In economics, budgeting is a basic step in doing something related to finance, if described more broadly, it can be interpreted as initial capital. Your initiative to raise this material can be used as a repeat or reminder for those who want to go further in anything. Without budgeting, everything planned will be in vain.

Without budgeting, you're mostly not going to track your expenses and the habits that you've been doing with your money. It's a good step for someone who wants to be financially free. They need to watch out the money that comes out and how much that comes in. It's not about on how much people earn because they can still spend recklessly without having a proper budget. But if they know how to budget their money, the bad habits on spending will be stopped and they will realize how much money can be saved if it's stopped.

[TheUltraElite]

You never know quite a bit of the new generation dont understand how much importance savings and budgeting for savings has now.

Capitalism led to a bubble that prices of things a huge and we need to earn big to get them, but we dont essentially need them. That realization needs to come early.

That does not mean that we live like a caveman, but even from our daily lives a lot things can be recycled, reused which adds to your savings. Be on the constant lookout for the numbers but at times it will become hard.

[Oluwa-btc]

If you want to live an orderly and prosperous life, then there must be a budget in your life, even for the smallest things, such as giving to others from what you have, because budgeting is that important in this life.

okay we can see who lives an orderly life, most of them live happily and stably, because they will anticipate things that they cannot predict that could come into their lives, we must see that life is not flat, when you get a salary and profit every month we must realize that it will not happen forever every month or every time we do business, therefore budgeting is very important for the endurance of a more responsible life.

There's so many things budgeting does I've heard people say it's restriction for them, there's no such thing as restriction but for clarity and safety of financial goals everyone should be mindful of their spendings and stick to a different and healthy budget.

[Chilwell]

If you want to live an orderly and prosperous life, then there must be a budget in your life, even for the smallest things, such as giving to others from what you have, because budgeting is that important in this life.

okay we can see who lives an orderly life, most of them live happily and stably, because they will anticipate things that they cannot predict that could come into their lives, we must see that life is not flat, when you get a salary and profit every month we must realize that it will not happen forever every month or every time we do business, therefore budgeting is very important for the endurance of a more responsible life.

When we talk of budget I think is most important thing which we need to do in our lives, but in this regard what I Understand by budget is actually planning of something we have in mind to achieve if we lay our hands on money we work for and we are expecting. Budget is for everybody and is what we live on in our daily activities. Between rich men and poor people there are a lot of differences when it comes to budget due to my own experience I think we have yearly budget, monthly budget and daily budget. Yearly budget belong to the government, monthly budget belongs to the rich men while daily budget belong to poor people. Poor people face a lot of challenges when it comes to daily budget  because they have to wake up in the morning and go out to get what they will eat. Any budget without contentment goes a lot of struggles which means it will involve a lot of debt and it make things go crazy.

[Dzwaafu11]

When we talk of budget I think is most important thing which we need to do in our lives, but in this regard what I Understand by budget is actually planning of something we have in mind to achieve if we lay our hands on money we work for and we are expecting. Budget is for everybody and is what we live on in our daily activities. Between rich men and poor people there are a lot of differences when it comes to budget due to my own experience I think we have yearly budget, monthly budget and daily budget. Yearly budget belong to the government, monthly budget belongs to the rich men while daily budget belong to poor people. Poor people face a lot of challenges when it comes to daily budget  because they have to wake up in the morning and go out to get what they will eat. Any budget without contentment goes a lot of struggles which means it will involve a lot of debt and it make things go crazy.

Rich people, the government and poor people have the same type of budget; the only difference here is the amount of money each of them will budget. Rich people are going to budget a big amount of money for their yearly, monthly and daily experiences, while poor people will do that based on what they have at the moment.

So, to me, there is a difference in budgets, but each of them budgets based on what they have and how they earn their money, so both rich and poor people and the government all budget for daily, monthly and yearly spending, but the difference is how much they both budget.

[Obulis]

For financial control, budgeting is essential because it try to make sure that resources correspond with priorities by curbing impulsive spending, encouraging savings and avoiding debts. Distinguishing wants from needs, budgeting focuses decisions in necessity and promotes disciplined allocation of resources.  

Accountability and direction of fund to impactful projects can be promoted by budgets for businesses and governments. Adaptable budgets gives room to changing goals and reduces financial stress.  For sure, budgeting  projects living intentionally (personal, business or government), turning income into purposeful action, not just survival.

[jcojci]

Without budgeting, we will difficult to control the money because we will just spend it without think about the needs that we have. That will give us a problem because when we want to buy or fill the needs, we don't have the money. But if we can budget with right, we can fill our needs and know how much money we still have. We will not confuse with the needs especially for emergency situation because we already prepare for those thing.

Budgets requires discipline so we must follow our rule in budgeting so we will be able to fill all needs. It is why we must learn how to manage the money and budgeting will be the important thing for us.

[summonerrk]

Without budgeting, we will difficult to control the money because we will just spend it without think about the needs that we have. That will give us a problem because when we want to buy or fill the needs, we don't have the money. But if we can budget with right, we can fill our needs and know how much money we still have. We will not confuse with the needs especially for emergency situation because we already prepare for those thing.

Budgets requires discipline so we must follow our rule in budgeting so we will be able to fill all needs. It is why we must learn how to manage the money and budgeting will be the important thing for us.

All this is true, but as a person who actually keeps a budget and records all expenses in the application, I want to say that this method does not help to optimize income and expenses much. It does not add money to your pocket, but only gives an understanding of where the money is spent and how much money was earned in which area. Yes, of course, any smart person will be careful with spending after knowing where and how the money goes. And it is necessary to keep a budget, but if you have a family or a child, it will be very difficult to optimize spending, because family members will constantly have their own unpredictable needs.