Funadvice Logo
Explore Join
More Finance, Jobs & Money Questions

Why do we budget money?

Hi I need to explain why it is important to create a personal budget plan .. I know its to save money when you need to but I just cant seem to put it into a paragraph .. Please help :) x

Become an Expert →
Answer #1

When putting money into a budget , its not only about saving money its about managing the money you have so you don’t end up broke. Imagine trying to pay bills and not knowing how much money you spent, have, used. How confused would you be, thats why people budget money, to know how much they have, what they can spend, what they should save and so on. To make up a budget they would have to take the yearly income the person makes and divide that money into what ever it is they have to pay such as rent, food, medicine. Then come after expenses such as clothing and so on. What ever money is left they put it into saving.

Hope I helped you =)

Answer #2

Budgeting money is not just about trying to save money. When we know how to budget, we also learn how to manage our finances so that we don’t end up broke. You don’t like to pay bills or eat out without knowing how much money you have left or how much money you have spent. You wouldn’t want to go out shopping only to get your credit card denied. These are only some of the reasons why we need to budget our money. We need to know how much we spend and how much we have left for us to be able to manage our finances wisely. Check the below given article for more information:

More Like This
Ask an advisor one-on-one!
Advisor

Don't Worry Make Money

Personal Finance, Entrepreneurship, Frugality

Advisor

Make Money Hubz

Finance, Online Business, Entrepreneurship

Advisor

Get Money

kredyty, pożyczki, bankowość

Advisor

ACE Money Transfer

Finance, Remittance, Money Transfer

Advisor

How to Lend Money to Strangers

banking, credit risk management, finance