To see what languages and formats this document is currently available in, please check our on-line Library . Last revision 1993. A budget is a plan for spending and saving money. The main reason for making a budget and sticking to it is to save for future goals while meeting present needs. This is a cash flow, not an income, problem that can be rectified by budgeting and planning.
People begin to budget for a variety of reasons.
Some are forced to by life circumstances, like unemployment, to control their finances to survive. Others budget to rectify financial problems causedby overspending or abuse of credit. Still others budget to prepare for major expenditures like a child's education or to purchase a home. A budget is a concrete communication of your personal goals and monetary plans to yourself and others. A budget can help motivate you to reach goals by setting achievable intermediate objectives.