Identify the importance of budgeting and budget monitoring I

Identify the importance of budgeting and budget monitoring

Identify the importance of effective money management and its long-term benefits

200 words

Solution

Budgeting gives a plan to spend the existing money. It insures that you have enough money currently and for future for important things. It avoids the excess spending as you have to meet you requirements as per the budget only. Working religiously with budget eliminates the debt.

In budget total revenue and expenditure is planned. Budget monitoring means looking after whatever was planned is adhered and there is no any deviation.