Importance of a budget

If you look up the meaning of the word “budget” in dictionary.com you will find that there are ten definitions listed for this word. However the best one that I liked was “the itemized allotment of funds, time etc for a given period of time”

I have learnt the importance of budgeting for the last couple of months. It has not only provided me with a history of my monthly expenses, it has also helped me to track down my un-necessary expenses and cut down on it. It has tremendously helped me to achieve my goal, and based on my budget now I can forecast how realistic my goal is. Now, I have an estimation of how much money I need every month for grocery, fuel etc to which I was oblivious couple of months ago. In other words living strictly by the budget it has helped me to save money and I have already reached the first goal of this year which is having a $1000 in my immediate saving account that covers any overdraft protection for checking account or any unexpected expense. Now I am on the voyage of saving $5000 until end of this year. I know that all I need to do to reach that goal is to follow my budget religiously. So, if you happen to read this post and have not worked on a finacial budget, please start immediately and you will not regret.