The Importance Of Personal Budgeting

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Personal budgeting is one of many important factors you should inherit during childhood and practice throughout adulthood. An individual who learns about personal budgeting and financial stability at a young age, will most likely be financially stabled than one who does not. A budget helps an individual understand their strengths and weakness regarding budgeting. Setting a budget and tracking your expenses is the only way to know where you stand financially. Without a road map of your financial health, you do not know what is going on. (Why Making a Personal Budget is Important, 2014). A personal budget should show a person’s income, all spending habits, financial responsivities, and flexible expenses. Having and not having a budget can be …show more content…
A person may spend more money than they have the income to cover all financial responsibilities. Knowing exactly where you stand financially can be a major stress reliever. You do not have to worry about the unknown because you know your financial strengths and weaknesses. You can plan accordingly and fix any problems that may need fixing. (Why Making a Personal Budget is Important, 2014). Not having a budget can place a financial burden and separation in a family. Having a budget in place prevents out-of-control spending and lessens the likelihood of arguments. (How Can Budgeting Affect One 's Personal Life, 2016). Associated Press and AOL conducted a poll that revealed that the people who reported high levels of stress over debt were also more likely to report a wide variety of medical issues, including headaches, depression, and lower back pain. (How Can Budgeting Affect One 's Personal Life, 2016). Personal budgeting decreases anxiety about your finances and allows you to concentrate on increasing income, hobbies, and spending time with family. (How Can Budgeting Affect One 's Personal Life, 2016). An individual may be in denial about their debt that causes stress-related

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