HOW BUDGETING AFFECTS YOUR DAILY LIFEEvery days of our life, many things happen that affects our daily life such activities and tasks that we need to do. How we spend our money of course is one of the things that could affects on our daily life. When we talks about money, we need to have a plan on how we are spending our money effectively. Plan on how we are spending money called Budget.
The process of creating a plan on how to spend the money called Budgeting.Budgeting allows us to determine about our money situation in advance whether we will have enough money to spend on activities or to buy something that we need. If we do not have a plan on how to spend our money, we might overspend our money. Budgeting is not only focuses on something that we need to do when we are short on cash. In this article, we will discuss about how budgeting affects on our daily life.First of all, from budgeting we puts us in control of our own money. We are able to view our budgets as a path from losing control over what we can spend on our money and we can spend our money.
When we create a plan on how we are going to spend our own money, we get to decide on how or when we will spend the money that we earn or that we have in our savings. There is an English term that said “Give each dollar a job? Or we can say that each of our money serves a purpose. The spending plan that we create, helps us to assign the money of our income a purpose for our daily life.Second thing that would happen after budgeting, we will find that budgeting is one of a solution to overspending. When we have a spending plan, we get a clear vision of how much money that we have earned every month. Then, we can determine on how we are going to spend the money.
Before start budgeting we will simply use our own money, when we overspending our money we will have a thought that we have an income that seems a problem that did not fit on how we are spending money that we made every month. Sometimes, we are going to face debt problem in the process to fit on how we are spending our money. In reality, we just did not realize that we already overspending our money in each month. When we create a budget or spending plan, we will have a view where our money goes every month and we can determine the amount of money we need to spend on anything that is needed or necessary and we can avoid on spending too much than we are supposed to.