Benefits Of Budgeting

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We often ask why is budget such an important life skill well it ensures that you will always have enough money for the things you need and the stuff that are important to you.

The dictionary meaning of budgeting is the process of creating a plan to spend your money.

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Budgeting is important to have in the life orientation syllabus because it helps us learn about the importance of savings and how to make a spending plan with your money. It teaches us to have objectives to reach the financial position we want in the future. Trust me this will be your life saver when you get to university.

When it comes to budgeting we tend overuse our money before the end of the month to pay our bills and abuse on using all our money on things that we think we are need of. When you stick to a budget you never get to point in where you get bankrupt as you are able to control your spending by making a plan weekly or monthly.

The resources needed to learn budgeting are a spreadsheet which we can get on excel, the maths lit textbook which gives us the format on how to do the spreadsheet or use the internet which gives easy tips on how to budget.

Prioritizing is very hard especially when it comes to drawing up a budget. This helps you know how much money you spend and help save money for things and plans that you have in the future. Looking at your bills and drawing a budget may not be fun but at end of day you won’t be the person going on debt and you always have money at the end of month to go on a shopping spree.

Here some Benefits of budgeting:

Firstly, it helps you prepare for any case of emergency because you never know what could happen.

Gives you control on how much you spend money on compulsory expenses and extra expenses that you add on.

It helps you focus on your goals in terms of you attaining to a financial goal that you want to get.

Helps you organise your savings in terms of splitting your money in categories such as compulsory expenses and savings for future use.

Provides you with an early warning for potential problems which means you can be able to make adjustments before an actual emergency may come into the picture.

The objective of adding budgeting to the syllabus is to teach us to have a coordinated plan of action to achieve the estimates in the budget and to learn how to monitor your money and how much savings you get every month. To help you plan all your spending’s and savings.

Obstacles faced is having bad debt, struggles with managing time as it is time consuming to make a budget plan, lack of financial goal and going over budget. To simply not face bad debt always pay your things on time and always save money in case of emergency. It can less time consuming if you already have a plan of the budget you planned for yourself. Set a goal that you want to reach financially and try restricting yourself from buying unnecessary stuff.

In conclusion budgeting will helps us save a lot of money and will helps us avoid having bad credit in the future when we start adulating soon. Will helps us be flexible and have more control on spending money.


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