What Is A Budget And Why Everyone Should Have One

Budget is a versatile word that refers to money and how much of it you have total. When we say we are trying to keep within a budget, we mean that we are trying to stay within a well-defined monetary limit. That limit is set by an individual (or a company) and, depending on their situation, can be very broad or narrow.

Regardless of how much money someone makes, everyone has a budget.Setting a budget for a company is an entirely different matter, so let’s focus on how a budget can help the individual.

A budget takes into account how much money is flowing in (income) and how much goes out (expenditure). If your expenditure is greater than your income, you are losing money. Consequently, if your income is greater than how much you spend, you have a little bit extra.

An important fact that many people fail to realize is that if you continue spending frivolously and without care, you will never save enough money to be comfortable.

Obviously, we all need to spend money on something. We can’t just cut out paying rent or buying groceries because those are necessary for us to continue living. What you need to do when budgeting is take into account those things you need to pay for (rent, groceries, gas), and those things that you can potentially cut out of your expenditures.

One way you can save money and still pay for the things you need is to look for cheaper alternative. Buying brand name products can be pricey, and oftentimes the generic form is the exact same thing at a more reasonable price. Once you sit down and figure out where your money tends to go, you can find ways of keeping more of it and developing money saving strategies that are tailored for your needs.

 

Photo credit: 401(K) 2013 / Foter / Creative Commons Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0)

Related Posts

What Are Some Ways You Can Start Saving Money Today?

What Are Some Ways You Can Start Saving Money Today? Saving money is not always easy. It’s a habit that can prove to be challenging but it can end up being very beneficial. Anyone can develop the habit of saving. Following are some of the ways you can start saving money today. Budget A budget […]

Turn Your Knowledge Into Dollars: How To Make Money Teaching Online

Turn Your Knowledge Into Dollars: How To Make Money Teaching  Online One of the more satisfying methods to generate income on the internet is through selling some skills that you’re proficient at. Can you teach someone how to fix something on their automobile or show how to repair a broken computer? Simply just get your […]

How To Instantly Save Money Using Coupon Sites

How To Save Money Using Coupon Sites

How To Instantly Save Money Using Deal And Coupon Sites Everyone likes a bargain. Some people are so used to bargaining they try to negotiate on everything. Many stores offer online discounts and occasional in-store discounts to promote sales. Here are some tips on how you can save money using deal sites. Using coupon sites […]

How To Save Money On Your Next Vacation

Anyone who has traveled a lot knows that a vacation can be very costly. There are many expenses which you have to pay which include airline tickets, accommodation, local transport, food, activities, etc. Fortunately, there are several ways to reduce the cost of some of these expenses. Following are a few of these tips. Airline […]

Why You Never Earn as Much From Freelance Writing as You Would Like

Why You Never Earn as Much From Freelance Writing as You Would Like Freelance writing can be a lucrative avenue to make some extra cash or to start a career. Freelance writing has a low barrier to entry especially if you have the right information to bridge the gap. To make money from freelance writing, […]

Start Your Business Easily With Shopify

  Start Your Business Easily With Shopify Shopify is a new and upcoming platform for e-commerce. It provides the perfect environment for doing business without a brick and mortar infrastructure. The persons that can benefit from Shopify are small-scale entrepreneurs who are looking to expand their customer base. It brings the entire available customer base […]

%d bloggers like this: