Why Budgeting is important?

Spend Less than You Earn

what is the importance of budgeting?

Unless you keep track of your all income sources and all kind of expenses, you will never know that weather you spend less than you earn or not? And spending less than you earn is the key of successful financial planning , build wealth and fulfill your financial goals.

I know that budgeting is the most boring part of the financial planning game. It’s most boring exercise but cant help  you cannot avoid it, its very important.

The idea behind Budgeting Exercise is, you minimize your expenses, increase your income and thus increase the Cashflow (Income – Expense) and divert this cashflow towards long term investing. Unless, you divert your cashflow towards investing to build wealth, you can’t be financially free and rich. So do budgeting periodically say month or a year and keep the track of all your expenses.

The simple words budgeting is, "You Should Spend Less than You Earn"