A budget is your income’s best friend. The process of establishing a budget identifies where funds are going. You are then able to isolate areas where the allocation of resources is more efficient. A big piece of financial success is being able to understand and control where income is going, and a budget assists in this process.
With all the benefits provided through budgeting, it is estimated that only 32 percent maintain an active budget, according to Gallop. Unfortunately, this means that the majority of Americans do not have a clear understanding of where their money is going, leaving room for poor money management and overspending. After all, if you don’t know how much you have, it is easy to spend more than is available. Read more