Guiding Questions
In this blog, we’ll look at budgeting and why it’s essential for financial success:
- What is a budget?
- Why is budgeting important?
What Is a Budget?
A budget is a financial plan that tracks income and expenses over a certain period of time. It helps ensure money is spent wisely.
Main Parts Of A Budget
- Income: Money received, such as salary or allowance
- Fixed Expenses: Costs that stay the same, like rent
- Variable Expenses: Costs that change, like food or entertainment
- Savings: Money set aside for future needs
Why Budgeting Helps
Budgeting prevents overspending and encourages saving. It allows individuals and businesses to plan ahead and avoid debt.
Review
- What does a budget track? Income and expenses
- Which expense changes often? Variable expenses
- What helps avoid overspending? Budgeting
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