What is a budget?

A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows

Why are budgets so important

budgeting is important because it helps you control your spending, track your expenses, and save more money. Additionally, budgeting can help you make better financial decisions, prepare for emergencies, get out of debt, and stay focused on your long-term financial goals.

What’s a financial plan?

Financial planning is the process of outlining how your money, investments and other assets can help you meet your financial goals.
A financial plan identifies, organizes and prioritizes your financial goals, then outlines the steps you need to take to achieve them.
A financial plan is a document containing a person's current money situation and long-term monetary goals, as well as strategies to achieve those goals. A financial plan may be created independently or with the help of a certified financial planner.


Importance of having a budget 

Managing a budget is crucial anytime, but especially in 2021 with the impact of COVID-19 on the economy.  Budgeting is that the most basic tools for managing your money. Still, a vast majority of people avoid having a budget because it's “extra work”. Often time people believe that budgeting also dictates that you are no longer allowed to have fun and enjoy things. Let me tell you from over a decade of budgeting this is completely false, honestly, it does the exact opposite.

A Budget Helps You Save Money
Budgeting helps you save money by controlling your expenses and eliminating wasteful spending. Additionally, since budgeting requires you to plan your finances ahead of time, you can save money without worrying if you will have enough left over for your living expenses.

A Budget Keeps You Out of Debt
A budget can keep you out of debt or help you get out of debt. A budget actually creates extra money for you to do use on things that matter to you. A budget helps you sleep better at night because you don't lie awake worrying about how you're going to make ends meet.

A Budget Keeps People Organized On Spending
With a Budget, you have plans on what to spend on and what not to spend on. For example having a monthly budget can save you money when going for shopping for example

A Budget Helps You Meet Long-Term Goals
Having a budget in place will allow you to maximize your income – paying down debt, building your savings, and achieving financial health. A budget also helps you identify areas where you can cut back spending, freeing up more money for savings goals or paying down debt.

Will Help Create a Cushion for Unexpected Expenses
Due to the fact you have savings , that means you have extra cash to handle unexpected expenses that might arise. You have enough cash to meet those needs immediately. you wouldn't need to borrow

Allows You to Pay Debt Quickly

Budgeting Helps You Invest
A budget allows you to understand what you can afford, make the most of buying and investing opportunities

https://blog.investa.ng/importance-of-having-a-budget/

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It is a great article for self-development. Financially literate people are distinguished by the ability to count money correctly. This is about the planning of budget, optimizing of costs, and resistance to spontaneous purchases. I use advice from https://wealthynickel.com/recommended-budget-percentages /. Btw last year was the hardest one for me. I had a large flow of income and didn’t bother about spending. However, I was no longer able to spend money with the same enthusiasm after I had some difficulties at work.