Why You Need to Budget


No one really wants to budget. Most people hear the word BUDGET and begin to wonder what other things they could be doing besides making a budget. Things like visit the in-laws come to mind. It really makes you wonder if you really need to make a budget. If you want to get technical you don’t have to do anything, but I ask yourself a different question. If you don’t create a budget, then how do you know where you stand with your finances?

When in college students plan what classes they’ll take, how many classes per semester they need and then continually monitor how they’re doing with requirements in order to graduate on time. Without doing this they miss classes that are not scheduled all the time, forget to take their basic classes and don’t take enough classes to graduate in a timely manner.

Your money is no different. If you don’t plan for what should happen to it and then monitor it – it could end up way off track and delayed!

Budgeting Reduces Expenses

In addition, budgeting helps you decide where to reduce expenses – especially if you need to pull back in order to live on less than you make. It is hard to make reductions if you have no idea where you may be spending too much. This is similar to when someone is trying to reduce their food intake, if they do not know when they’re eating or drinking too much then it’s hard to know where to make reductions.

Budgeting May Surprise You

Budgeting and the knowledge you gather from really doesn’t have to be all bad and sad. What if you find out that you are saving too much or really do have the extra money for vacation?

Sometimes the stress of feeling like there is not enough comes from the fact that you may be OVERsaving. You may think this is a good thing, but just like with food you need to eat a minimum amount of calories or your body will not have enough food to operate as it should.

If you’re saving over 20% and constantly feel like you don’t have enough money for vacation, then your money is not helping you operate at full capacity. It’s good to always have enough money to save some, spend some, invest some and even give some.

Don’t Hate

Don’t hate the budget. Change your mindset to look at it for what it is: a useful tool that can help you achieve your financial goals and create more independence and freedom for you and your money.

How To Create A Budget

There’s a lot of ways to create a budget. Do what works for you. If you need help, then you may want to seek out professional financial and debt counseling. Also, there’s a lot of useful budgeting software available that can walk you through the details on how to create a budget.

Here’s some budget creation software that can help you get started on the road to budgeting:


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Adam McCallister

What software are you personally using? I’ve tried quicken for a while but havent heard of the other too. Watching some youtube tutorials on Mint and it looks pretty easy. Any extra advice on the software part?

Alvaro Saenz

It’s a shame that nobody teaches you this at school. Everyone has sometimes asked himself “What do I have to learn arithmetics or caulculus or the like?” Thi is why: mathematics are usefull for budget. But instead of explain that, schools focus exclusevely on complicated (yet useful for some specific careers such as enginerings and applied sciences) applications of mathematical knowledge. We should learn that mathematics are useful for everyd life.

Jason Considine

This article makes a good point when I was younger I didn’t save for anything and spent money like it was nothing. It wasn’t till I realized that I was always broke two days after payday that I started budgeting and saving money.

Jesus Prieto

The importance of budgeting is not only important, it is a must do. This shows organizational skills and how well you have control over your expenses. It also allows you to have an overview of what you may buy in short or long term.


That was so insightful. The fact that budgeting can be a hard task, i have come to learn that it is very advantageous.

Catherine Detharidge

It is wise to have a budget.This gives you the opportunity to see what your money is going on in black and white. Sometimes we over spend and don’t realize this until it’s too late. A budget makes it simple, you know how much you have to spend in each area and that greatly cuts back on over spending. In return you are able to save that money. Spend it on yourself or someone you love that makes every penny saved even more valuable.

lemaiyan karianjahi

Budgeting is the most basic and the most effective tool for managing your money. Yet, most people avoid doing it because it is additional work, much like cutting your lawn or fixing the roof. bugetting gives you control over your money hence it is very essential in life.


One never thinks of that until it is needed and usually when you realize you need a budget, it’s because you’re getting in trouble.
It seems to me like a good idea to create budget, because of credit, now one is able to spend more than you earn and that is a very dangerous activity, so procrastination is just as dangerous.
Save money, but keeping it in healthy limits, so one won’t oversave. “everything with measure, nothing in exes”


Budgeting is to money what eating is to health. You do not budget properly, you end up losing your financial health. The best part is that you know how much to spend, how much to save , how much to give and how much to invest. Better to go for a budgeting tool if the amount and time frame are on the higher side. Remember you never loose if you live to your budget…its always a success.

A Gupta

I think the article is extremely relevant for today’s youth who have somehow ignored the idea of budgeting and saving and believes on living off on debt (provided in the form of EMIs, Loans, credit cards, etc). Budgeting helps us not only manage our everyday expenses better but also helps us save a portion of the income for our future needs.


You are so right; budgeting is so important in order to stay on a good financial track. Finding what works for you ,and sticking to the budget, can help you reduce expenses that you may not have even realized were costing you so much.

Holly B,

I never realized that saving too much could be a problem. This is really important and useful information. Without budgeting a lot of things can become a problem. With budgeting it seems like anyone could possibly achieve goals they have, be it vacation, spending more on themselves, donate to a charity, or just to have the extra money.

April O.

Budgeting is prioritizing what you actually really need to buy like the basic needs,stuffs you need on a daily basis and giving importance to bills you have to pay as well. These are very important if one wants to have some savings left rather than being impulsive in buying unnecessary stuffs you don’t actually need.


I never thought of it as “oversaving”…what a concept! And, as a young adult, to have financial freedom this early in life would be such a great springboard into our future! We must invest early to reap the benefits later!


It is indeed important how you spend your money, but not everyone including me know how to do that. the software which was mentioned in the article was in fact helpful. I started using the software 2weeks ago and I’ve been using ever since.


Budgeting certainly is very important, especially for college students like me. Without using some simple tricks you aren’t able to track your money properly, and could easily get in debt. The software mentioned in this article is definitely helpful!

Jessica Cal

I’ve attended a seminar about budgeting some two years ago. It really helps. Since I started budgeting my salary, I easily avoided overspending. I also found a way to convince myself not to spend on things I do not need.

Preeti S

This is very useful information and it helps in understanding the point that why we need to budget and how budget may surprise you by saving an extra buck. As it is so true that it is hard to make reductions if we don’t know where we are spending too much.

Rahmah Astuti

It feels a bit frustrating to have to do budgeting, but indeed if it is to achieve that the better financial. Budgeting software i prefer is budgetpulse because is easier to use.

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