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What are the importance of budgeting?

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Importance of budgeting include;

  • Budgeting acts as a guide to wise purchasing by prioritizing spending.
  • It enables one to live within their means by spending only on items they can afford.
  • It also enables one to avoid impulse buying by buying only the budgeted items.
  • One is able to set priorities and plan for present and future needs.
  • It enables one to accumulate family savings.
  • It provides a basis for analyzing the needs of the family.
  • It also gives psychological satisfaction to the family members because all the needs of family members are met.
  • Budgeting enables a family to estimate all their financial needs and plan for other sources and methods of supplementing their income.

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