3. Why do we need budgets?
Budgets are critical to creating a compass for where you want to go. When creating a budget, an
individual seeks to have a more significant analysis of where their capital is going and calculate
how much will be left over after their expenses are totaled. When we see our budget, we
understand the allocation and begin answering a question like what is my financial priority?
Student Debt? A car note? Children? We create plans with our budget to ensure that these
priorities are always taken care of, not bringing us more financial strain and headaches. Moreover, budgets for a business and individuals are similar one considers a larger-sized
operation.
