Budget, Is It Important?

Budget, Is It Important?

 

The main purpose of a budget is to organize finances and make it easier to make decisions, a clear ¨money forecast¨ helps us to set objectives, and find the way to achieve them.

This; off course works in companies but is also helpful in personal life, if you have clear how much money do you have, how much money you can invest, and how much you can spend, you will have the control and make the right decision.


1. LET´S SEE WHAT ARE THE ADVANTAGES OF HAVING A BUDGET

Knowing what are the advantages make it easier to organize our budget, have the knowledge about what we have and what we need is the clue!

2. KNOW IN WHAT ARE YOU SPENDING THE MONEY

Many times we get the end of the month and we just wonder where is my salary? We spend money every day in big or small amounts and often we forgot what.

So if we know in what exactly we are spending the money we could identify what our expenses are and maybe avoid the ones that are not necessary, so we can give an efficient use to the money.

3. NOT GET INDEBTED UNNECESSARILY

As we already saw knowing what our expenses are, to know what the incomes and expenses are will give us an idea about in how much can we indented or if we definitely cannot.

4. ORGANIZE OURSELVES!

Get a better known about what are your main expenses (the necessary ones), and also the ones that you can cut in case you need to reduce them, in this way you will be able to save more money to achieve that goal.

5. HELP!

Making a budget does not mean that you have to have a pencil a piece of paper and a calculator all the time with you, or keep all the bills that you receive during the day, nowadays technology gives us tools for this, there are so many apps which helps us to make the budget and have control of where our money goes.

6. HOW CAN I START MY PERSONAL BUDGET?

The first thing is, to be honest, write the real incomes that you have not an estimated, as well the expenses the main ones what are they and how much cost you per month; have control of daily expenses ¨take notes¨ of everything even the small purchases, with this information clear you can design your budget decide how much money you can save, or invest or whatever that you plan is, and the important point here is to FOLLOW THE BUDGET. You can make adjustments like reducing unnecessary purchases, is a good idea to have clear what are the debts on what date you have to pay them so you can distribute the money and do not be late.

The ideal is when you subtract your income vs your expenses and debts the result be positive it means that after paying everything you still have some money left.