IMPORTANCE OF BUDGET

Hello Friends,

My this blog is related to tell you about the Importance of Budget. 

"Budget is a plan in which you decide how to spend money 

systematically."

Let's take a simple example and starts from your home:

• Rahul is a married man with two kids earns Rs. 35,000 in a month and get on the 10th of a month and starts spending it in various expenses like bring a ration, pay for school fees, buying vegetables, buy some clothes, pay some medical expenses etc. and at the 25th of the month he already spend Rs. 28,000 and only Rs. 7,000 left with him without any savings for rest of the month and then he worried that how to spend for rest of the month. 

• Ramesh is a married man with two kids earns Rs. 35,000 in a month and gets his salary on the 10th of a month and makes a budget and spend accordingly and at the end of the month he has left some money as a savings which he uses as an investment as well as for emergency. 

In the second example you have checked that Ramesh spends his money with planning and makes his budget for his expenses so that he has some savings but in the first example Rahul spends his money without budget so he has no money left with him for savings at the end of the month. 

So it means budget helps in many ways like:

• It helps to spend wisely.
• It helps to start savings and investment. 
• It helps in financial planning.
• It helps to secure your future. 
• It also helps you to make you happy and many more...............

I hope this will be helpful to you.

Thanks and Regards

Kulvinder Kaur

B.Com(H), MBA(Finance)

9871580806,8826566751

rightsteptoinvest@gmail.com