Management Of Family Resources

Lesson 36 : Budgeting

Introduction

The most common planning device for the use of money is the budget. A budget is an allocation guide for coordinating your expenses with your income. In other words budgeting is organizing the finances, so that one can pay bills when due, buy necessities as well as luxuries and have some money left over to save or invest or spend on future needs. Budgeting is the direct, sensible approach to personal money management. The budget provides a method for the family to get what it needs and wants.

It is not book keeping of the cost of each and every purchase and also not a permanent structure which can be referred to every time while spending money. It is a tool and tools lighten the work. Budget is strictly personal. Your budget is not and should not be the same as your neighbor’s or your friends. Your needs are unique and so also your budget.