To take control of living, purpose is required
To take control of spending, budgeting is required
Expenses will never cease to occur because human wants are insatiable, one way to have this in control is through budgeting which can also be tagged spending plan to help improve financially, save, invest, and keep track with the financial goal.
Budgeting plays an important role in how firm we stand financially and how worthy of how net worth becomes it is one easy way to track expenses and income and also a discipline over needless spending.
There is a need to make a budget one time or the other because that way takes control over spending but as important as it is to make a budget so are also factors to be considered in budgeting which include.
NEED
priorities are important and that is why need is different from want,
Needs are basic things and necessities.
needs are to be considered when budgeting because they are things that we can't do without and are required, they play a huge role in how comfortable and stress-free we get as individuals.
In making plans of spending and receiving they are to be considered as a high priority.
INCOME
You only get to plan on what you receive or see and how firm budget becomes depends on what you receive.
Incomes determine how long the budget gets to be,it's one important factor to be considered in making budgets.
INFLATION
There's always a change in price levels of goods and services and a rise in the price level of goods takes a huge effect on how spending is to be done which balls back to an effect on how plans have already been made before the rise.
Inflation is to be considered in making a budget because a rise in prices levels will have a hit on expenses
Everyone wants to be in control when it comes to spending but then expenses sometimes deprive that, budgeting help us one way or the other to be in control over finance and have a stable financial life.
To budget is important but considering factors attached to it also is crucial
Here is a response to have leaner week 8 topic about budgeting