The Importance of Personal Budget


Living within a budget is one of life’s little known secrets towards building personal self esteem. There are many parts of the individual that go into developing self esteem. One of those parts is handling money and handling how it is used in the community. We all have to deal with finances. Buying and selling are what keeps a community of people actively involved in keeping their community healthy and growing. Within a community, you will find those who are more successful than others. If you study one of the more successful members of a community, you will soon discover that he or she lives carefully within the limits of a budget and doesn’t have loans with bad credit.

What a budget does is to put structure on the daily activities of the one who is following a budget. Those limits add to his or her sense of responsibility which adds to his or her sense of self esteem because our community sense values responsible acts made by adults who behave responsibly.

A budget is a sum of money that the person has to spend to keep himself or herself alive and healthy in his or her community. A person does not arbitrarily pick a sum of money as if it had no point of origin. The money a person picks to set his budget comes from his job or his or her other sources of income which is money paid to him or to her from an outside source. Once a person has a steady income, he or she can begin to live with the limits of a budget. Without an income, a budget is impossible. The income should be reasonably steady but the amount can increase without affecting the budget. The contents of a budget are simple. All needs that have to be paid for with money are listed like rent and

moneyA sum of money that has to be spent on keeping rent and food is also listed. Those sums are subtracted from the total sum or income that has been allocated in the budget. Other needs like clothing, transportation and entertainment are also listed. The amount of money that can be spent on getting those needs depends on how much is left after the essential needs have been paid. That is basically what a budget does and it is not very difficult to devise a budget but what is difficult is living within your budget.