How and where do we start with savings and investments? These are the questions that come to us when we take our first step towards personal finances. We all want to make a lot of money but that can only happen when our 1st step is right – Budgeting. With budgeting you can create a plan and prioritize your expenses to help you save more and build your wealth.
One may feel budgeting is a headache and it makes you compromise on what you want. But on the flip side, budgeting allows you to buy exactly what you want by allocating money for it and understanding your financial limitations. For example, you wish to buy a INR 50,000/- watch but your budget, as per your financial ability to pay, allows you just INR 20,000/- to spend. So, either you save wisely and budget the watch in the coming months and if you want it now, lower down your needs.
Budgeting is a break-up of your income and expenses done regularly, mostly on a monthly basis, to understand what you have and what you can afford and how much you need to save for your future.
Let’s see some of the benefits of Budgeting:
Keeps you organized: When Budgeting, maintain an excel sheet or use an app and record all your expenses, from your utility bills, to gas bills and grocery spending, everything needs to be recorded. This way you will not only be organized but if any month your bill spikes up, you will be able to spot it.
Manage your debt: Some Debts are good debts too like a loan for buying a house as it improves your financial standing in the future. If you understand your debt properly and budget your expenses well, you can even save more and pay off your debts early. Also, when you budget you know how much debt or loan you can afford if you plan to buy something new.
Gives you the power: When you make a budget, you are controlling your money and not the other way round. You are able to see where your money is going and what are the expenses which can be cut down.
Prepare for Emergency: Emergency comes without informing and at a time when you are not at all prepared for it. Your budget should always include emergency fund which should come to approx. 3 to 6 months of your salary. When you are prepared for unplanned expenses, you don’t get hit financially when the situation arises. However, don’t put all your savings in emergency fund right away. Budget it gradually and build up the amount.

Keep an eye on your goals: Budget helps you identify your goals and how and when you wish to attain it. So next time you see any thing shining and interesting in a shop, you will think twice before stepping in. Either you can have short term pleasures with these things or enjoy your big goals like a fancy holiday or a car by keeping an eye on your budget.
No more sleepless nights: People who spend sleepless nights thinking how they will pay the bills are allowing their money to control them by not budgeting. When you know what you have and how you can spend, you don’t need to toss and turn around thinking how are you going to manage your expenses.
Have a happy retirement: We all want a good life after retirement and that can happen with right budgeting and saving habits. Though you make small sacrifices right now, the big picture is going to be really glorious. You did rather go for a beach holiday than work at a grocery store in old age to make ends meet.
These are just the tip of an iceberg, but budgeting has many other advantages and it is one habit that will help you prosper in life and attain your dreams and goals.
In my next blog I will share tips on how to budget in simple and easy steps. So, stay glued and don’t forget to leave your thoughts, experiences and views in the comments below.
Till Next time,
Happy Budgeting
This blog is a part of Blogchatter’s #blogchatterA2Z challenge.
24 replies on “Benefits of Budgeting”
Elaborate explanation! Looking forward to the next post.
Thank you
Very well explained, One’s appetite to save is one’s ability to growth… looking forward to your next post
Thanks a lot.
It is important to understand Investment before investing in any financial investment.
Very well explained! Looking forward to the next post.
Thanks a lot. New post coming today. Stay tuned
Budgeting is very essential otherwise you don’t know when the money comes and when it goes. The points shared by you are very relevant and I look forward to your next post to know more.
Savings and investments definitely need to be understood well. It helps one to grow! Very well explained.
Looking forward to the next post, really need help with budgeting
[…] always helps to cut down on our expenses and budgeting rightly (read my blog on Benefits of Budgeting and Steps to Budgeting). End of it all, we just want to have a comfortable life. When you […]
well explained. it is very important to balance between your needs and your expenses.
Yes dear I agree budgeting offers lots of benefits. it keep our expenses organized and also help in happy retirement.
Oh this is very important to me. Hopefully I will get some funds so that I can begin budgeting and save money for my retirement.
Very well explained in detailed. Thanks for sharing the post. Making a budget is the most important thing you can do to manage your money. Looking forward for upcoming post
I have been an ardent budgeter since my childhood- it really does help in overall financial management. A thoroughly informative post!
Budgeting is a very important aspect of our lives and our success in many ways depends a lot on how good we are at it. The benefits of budgeting are many and really help in improving the quality of life.
Budgeting is indeed very important. It helps us understand our finances better. Nice post. Thank you for sharing!
This is such an important post. Budgeting and planning the finances are so important and is useful for a financial free life. And I think the most important one is planning for the retirement which you have covered so well.
I am a huge advocate of budgeting for emergencies. In today’s time, no amount of planning can be enough, so saving lil amount every month can reap long-term benefits.
Investment are a must and we should always go for it
Loved your writing on investment
Budgeting is so important and I feel we all women should be equally savvy regarding this aspect of life.
Preparing a budget is a must for me. Helps me to get the idea of savings. And I guess everyone should include the habit of budgeting for a secure life
Indeed budgeting is a very good habit to have and helps one understand their finances much better.
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