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The Importance of Budgeting / By: Janel Ray


A budget allows us to create a spending plan for our money. I believe that setting a budget is critical because with a budget you know your limits in regards to spending; otherwise you have no idea how much you could be saving! Independent business owner Jennifer Beaza says that, “If you set goals for yourself that you want to achieve, you can reach these goals faster.” Setting a budget will allow you to be prepared for managing and staying on top of a task.

According to, “If you set a budget you will have a clear mind on what you can afford.’’ I believe that if I set a budget then I will be mentally prepared and will not go over the amount that I have set for myself.

A budget helps you figure out your long-term goals and work towards them. According to Amy Bell of Investopedia, “If you just drift aimlessly through life, tossing your money at every pretty, shiny object that happens to catch your eye, how will you ever save up enough money to buy a car, take that trip to Aruba or put a down payment on a house?” Kiara Hardin, a Depaul University graduate, says that “setting a budget allows you to see where your money is going and how much money you have."

In conclusion, it’s important to set a budget because it helps you maintain balance between your earnings and spending. Four steps to setting a budget are:

1)Calculate your expenses

2) Determine your income

3) Set saving goals

4) Record all of your expenses and income

Setting a budget puts you on a path towards achieving your financial goals. Budgets are an effective money management tool, and budgets provide control over personal financial stability. Visit (see page 12) to create your own budget.


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