Budgeting

Budgeting – Why?

Why is budgeting important?  How can budgeting help you?  Is budgeting time-consuming?  Where do I begin?  What good will come from budgeting?… How will I benefit from budgeting every month.

Why is budgeting important?

Budgeting is important because it forces you to organize your finances and own up to short-comings.   Budgeting will force you to pay attention to your monthly expenses and ensure that your income will cover monthly expenses.   If you ensure that you monthly bills and expenses are covered every month by properly budgeting, it will eventually improve your creditworthiness.

Budgeting is necessary to learn for anyone who is considering starting their own business.  A company without a budget or that doesn’t pay attention to their bottom line is apt to fail.

Budgeting will allow you reduce overspending.  Without a budget, you tend to spend more without regard to amount of money you have left to pay your bills and expenses for the month.  With a budget you are more in tuned to the amount of money you have available for spending and saving after your bills and expenses have been paid for the month.  The more you save, the less likely you are to be caught off guard by emergencies.

Budgeting will also allow you to find more opportunities to save for financial goals you have set, possible emergencies, and retirement.

How can budgeting help you?

Whether you want to become an entrepreneur, go on vacation, buy a home, plan to retire soon, or need emergency savings – budgeting is necessary to effectively get what you want out of life.

Generally, owning a business has start-up costs involved.  Whether you need to purchase materials, rent a space, or hire staff, you will need available funds to get your company off and running.  If you unable to receive funds through bank financing, government loans, or grants and you do not have adequate savings to fund your dream the opportunity to start your own business may pass you by.  Normally, banks want to see collateral such as savings well before approving a business loan.  If you properly create and stick to a budget every month, you can create a savings that will fund your dream and could even serve as collateral for the business bank loan.

With transparency that budgeting gives your financial affairs, you will be able to allocate available funds after your expenses and bills have been paid for the month to debts you would like to pay off.  You will be able to give creditors precise dates for payments for any payment arrangements that you are able to make.

Budgeting will also allow you determine the use of money you have available after paying your monthly bills and expenses to save for cash car purchases, your children’s education, your education, vacations, a down payment on a new home, emergencies, and retirement.

Where do I begin? – How to… Budget

Instructions on how to create a monthly budget are found on Article 8/16/2009 Creating a monthly budget

If you have specific questions on how to create your monthly budget contact me via

Email yourpersonalfinances@yahoo.com

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What good will come from budgeting?… How will I benefit from budgeting every month.

Budgeting will allow you to effectively time and schedule any financial goals you wish to meet.  Combined with a calendar or planner, a monthly budget can be used to schedule payments, savings deposits, and automatic transfers with ease ensuring that payments are made on time.  You will be better able to allocate money available after bills and expenses are paid to savings and meeting any financial goals you desire.

Don’t wait another day, start now.  Begin with a budget for this month.

Submit Comments, Suggest Topics, or Ask For Advice on Budgeting via

Email yourpersonalfinances@yahoo.com

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