Budgeting money is different from saving money. Budgeting requires dynamic or
active financial planning while saving money is a passive activity. Budgeting responses to the actual needs while saving is preparation for contingencies or future needs. You can
budget money on a daily, weekly, monthly and even yearly basis. It is easier to budget money if you have a fix and regular income.
Budgeting is a wise and effective way of managing your financial resources. Through budgeting, you can properly allocate funds for the most important things. Hence, budgeting is the prioritization of needs. Budgeting is applicable in all levels, from individuals to family, from corporations to government institutions. A budget is the projection of expenses. This prevents overspending or unwise spending.
Budgeting is about setting your priorities and goals. For instance, if you are a student and your only source of income is the allowance that your parents give, it is wise to budget your money to buy other things that you want. You may want to buy an expensive
baseball glove, but you may not be able to afford it immediately. The best way to save money is to have a fix budget. In this manner, you can project when you will be able raise enough money.
