Question

Discuss (don't just give a list, use examples) the 6 major benefits to be gained from budgeting. Approximately 500 words.

Answer 1

Benefits of Budgeting:

• It helps to plan, control and save the money, Example putting budget on daily basis to save atleast 100 Rupees per day helps to plan for vacation after 6 months which is long term, thus it helps to keep an eye over the spending. In this way we can stop un neccessary spending .
• It helps to allocates fund, Track what is coming in and going out for better future,It helps to plan investment opportunities and reduce debt
• It helps to organize funds, enables to decide for which portion i need to allocate more. Example 1000 for monthly grocery expenses, 2000 Rupees for Travelling expenses, 5000 for shopping and 10,000 for saving etc
• It helps us to meet the contingency or emergency expenses which we might have allocated in budgeting
• It helps us to give clear big picture of what might happen in future, so we can able to allocate for such expenses before it occurs. example :any unexpected medical expenses.