Economics Class

The Need For Budgeting

People who maintain a budget have a great advantage over those who do not. One obviously has to follow the budget for it to work. Following a budget can significantly reduce impulse shopping thus improving one’s financial situation. There are a few reasons why budgeting minimizes shopping on a whim.

When you budget you tell yourself “I can only spend so much money in this category, and if I overspend I won’t have as much the next week.” Basically you know you only have a certain amount of money for each category and you realize that you don’t have an infinite supply of money. You research the product you’re interested in to try to find the best deal. Budgeting is self-discipline, and that’s why most people don’t do it. It’s hard to tell yourself that you won’t buy something because you don’t have the money or that you need to wait until there is a better deal. However, the benefits of saving your money, buying only what is necessary, and being more responsible greatly exceed any trouble.

Not only will budgeting help our finances but it will also make us more responsible and more disciplined.

 

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