Jan 6, 2023
Do you ever wonder where your monthly money goes while you still have bills to pay? Almost 70% of the population has difficulty keeping their expenses within their income. If you have been facing this issue, budgeting is the one-stop answer to your troubles. Budgeting is one of the most important financial habits you can develop. You can assess in advance if you will have enough money to do the things you need or want to do by developing this spending plan.
But if you've never worked on a budget or have not experienced all of the benefits that budgeting has to offer, you might be wondering why it's such an important component of personal finance. So, why is budgeting necessary?
Let’s take a look at some of the benefits of budget planning.
Helps in identifying bad spending habits
Making a budget requires you to analyze your spending patterns closely. You may notice that you are spending money on items that you do not require. Do you watch all the channels on your expensive extended cable package or other streaming subscriptions? Budgeting helps you to reconsider your spending behaviour and refocus your financial objectives.
Helps you prepare and meet emergencies
Life is full of unexpected events, some of which are better than others. When you are laid off, become ill or injured, or have a family member pass away, it can cause major financial problems. Of course, these emergencies usually seem to strike at the worst possible time, i.e, when you're already short on funds. This is precisely why an emergency fund is required.
Your budget should contain emergency savings of at least three to six months' worth of living expenditures. This additional money will keep you from spiralling into debt following a crisis. No doubt, saving up three to six months' worth of living costs will take time.
Ensures you don’t drift away from your financial goals
A budget can help you determine and work toward long-term goals. How will you save enough money to purchase a vehicle or place a down payment on a house if you just float aimlessly through life, throwing your money at any attractive item that seems to catch your eye?
A budget drives you to set objectives, save money, track your progress, and turn your ambitions into reality. It may hurt to learn that the brand-new Xbox game or the cosy sweater in the store is out of your price range. However, if you remind yourself that you are saving for a new house, it will be a lot simpler to walk out of the store empty-handed.
Reduces financial stress
Having a budget can help you manage your finances effectively, therefore freeing you of stress and restless nights. This means you'll be able to afford that additional takeaway meal without worrying about ruining your dream house. While calculating numbers may not be your idea of a perfect Sunday, budgeting regularly helps you to spend money with confidence. Budgeting thus becomes the cornerstone of your search for financial well-being.
Provides a better picture of your finances
By keeping track of how much money comes in and goes out each month, you can analyze your finances and make adjustments as needed. For example, if you're barely getting by each month, a budget can help you figure out where you can cut your spending or whether you need to look for another source of income.
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Do you ever wonder where your monthly money goes while you still have bills to pay? Almost 70% of the population has difficulty keeping their expenses within their income. If you have been facing this issue, budgeting is the one-stop answer to your troubles. Budgeting is one of the most important financial habits you can develop. You can assess in advance if you will have enough money to do the things you need or want to do by developing this spending plan.
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Jan 11, 2023Do you ever wonder where your monthly money goes while you still have bills to pay? Almost 70% of the population has difficulty keeping their expenses within their income. If you have been facing this issue, budgeting is the one-stop answer to your troubles. Budgeting is one of the most important financial habits you can develop. You can assess in advance if you will have enough money to do the things you need or want to do by developing this spending plan.
Jan 6, 2023Yet again, it's that time of the year! The holiday season is around the corner, and so is the Dubai shopping festival. This is when shopaholics' dreams will come true, with unbelievable prices on anything they want, from fashion to jewellery, gadgets, vehicles, and accessories. But it's not only about looking for bargains. The world's largest shopping event features endless thrills and entertainment. There will be fireworks, fashion shows, live concerts, and much more.
Jan 6, 2023There's a reason why the holiday season is called the most joyous time of the year. It truly is wonderful to spend time with loved ones, attend holiday parties, and enjoy good cuisine! Unfortunately, this time of year may also bring on stress, which prevents many people from enjoying the season's delights. Much of that stress is typically due to the high costs. With the holidays coming around the corner, now is an excellent time to prepare ahead so that stress does not interfere with your holiday happiness.
Jan 17, 2023With ‘Connecting Minds and Creating the Future' as the theme, the end of six magnificent months of Expo 2020 Dubai saw millions of tourists from all over the world rush to Dubai to experience the 6-month mega event. Visitors were captivated by Expo 2020's world-class music, athletic events, breathtaking pavilions, and family-friendly activities. But, now that the Expo is over, what is the future of the international fair? Well, we have got some wonderful news for you. Expo 2020 Dubai will soon be renovated and reopened to the public as Expo City Dubai.
Sep 30, 2022Purchasing a home and obtaining a mortgage can be a time-consuming and stressful process for first-time buyers. Even though many buyers prefer to pay in cash to avoid paying interest, mortgages in the UAE provide the buyer with a great deal of flexibility when it comes to managing money, budgeting payments, and selecting the ideal property. We compiled the best tips to help you stay ahead of the competition. Here are five pointers to help you acquire the mortgage you desire.
Sep 30, 2022To mark International Women's Day, here are five financial empowerment tips for women, as well as some credit card offers available in the UAE that can help them reach their financial goals.
Mar 9, 2023Are you tired of spending money without getting anything in return? With the right credit card, you can start earning cashback on all of your purchases. Cashback credit cards are all the rage in UAE and have become a budgeting essential for UAE customers. These credit cards not only offer you money back on every purchase, but they also provide additional benefits such as loyalty points, discounts, coupons, etc.
Feb 28, 2023The debt-to-burden ratio assesses the proportion of your monthly income that goes towards paying your expenses (including loans and credit card installments). Banks use this measure to determine your loan and credit card eligibility based on your current obligations and ability to repay them.
Feb 23, 2023There's no better place to celebrate Valentine's Day than in Dubai, where you can express your love in some of the most romantic and unique ways.
Feb 13, 2023The UAE is home to some of the world's most lavish locations and masterpieces, including the Burj Khalifa, Palm Jumeirah, and others. Except for five months in the summer, the UAE offers great weather.
Jan 11, 2023