A personal budget is a finance that distributes future personal income towards expenses, savings, and debt repayment. Without a personal budget you will spend all your money on useless items you cannot afford. The effect of not keeping a personal budget can keep you from accomplishing your future goals. Today, money is very important in our lives. Knowing how to manage our money can help save us from debt in the future.
When becoming independent, for example college, can bring debts and loans. However, if you have a personal budget not only will you have total control on where your money is going but also have extra money to have for other expenses. When you graduate college you do not want to be full of debt because now you should focus on your career. If you’re becoming a teacher, nurse or just opening your own business you should have money left over to give to the career that you are passionate about.
The big impact that we will receive without a personal budget is not being ready for a serious emergency. Although it is important to keep a personal budget for our career or school, that budget can help us be ready in an emergency. For example, if a family member or yourself needs to undergo a surgical process and you do not have the money to pay for it; You would be in great debt. However, if you have a personal budget and this situation were to happen to you then you would surely be ready to have solution ready.
