Friday, January 31, 2014

9 Benefit of Budgeting of your money

To manage your money well, you should have a budget. However, some people are not interested with it. They are lazy to create a budget though there are so much benefit in budgeting the money. Here are the benefit of budgeting money.
1. Organize your money well
Though an employee get $120,000 per year, he cannot saves any peny. He used to spend entire money. Sometimes, he borrow the money from the parent. The employee cannot manage the money well.
2. Help us to save
The budget encourage us to save. No matter how much money that you can make, you should still save your money. Earmark 10% of the salary for your saving. You are better to save your money in front which means you save the money once you receive the money.
3. Focus on the goal
The aimf of create goal is to reach the goal. For example, you wan to buy Nintendo in one year. In the budget, there is a post that dedicated for Nintendo.
4. Aware your money
A man who does not create jobs may be confused when the money almost spending out. He do not know where he has spent the money. He become curios that someone near him has stolen the money. He ask the wife, or child about the money.
5. Free from debt
The Budget help you to settle the debt. The budget may not increase your income to pay the debt but it can help you to manage your money so you can pay off the debt immediately. Most budget that people create is to prioritize to settle the debt than spending money.
6. Protect you from stress
By budgeting your money, you know where your money spend. Therefore, you should not stress with the loss of money. You must spend it at some spending items.
7. Early warning
The budget is an alarm that remind your finance is running out.
8. Determine take the debt
Should we take the debt? You can take the debt if you feel you can pay it. Check the budget. Is there excess cash that you can use to pay the installment?
To me, I prefer not to borrow from other people. I just want to save for buying something or starting a business.
9. Communication with people near you
You can tell to children who ask something big that you have limited cash. Your kid may be understand your situation.
Read Also:
Four Financial goal mistakes
What should be included in Financial planning

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