The Importance Of Personal Financial Budgeting

Introduction

Being “rich” has different meanings to different people. Some people define wealth as having high income and having lots of costly ownership. People do not worry about finances and some bills to pay. Other people also define “rich” by being able to contribute in some organizations that matters to them and satisfying not just the needs but also one’s wants. There are varies reasons why do people become rich (“Personal Finances,” n.d). Having a successful business or pursuing in a high paying career is the common path to wealth. However, it does not only depends on it. People with economical living and have a wise investing can also result into a long-term financial security.

Nowadays, the future appears to be a main concern

Budgeting is a vital part of managing one’s personal finances. When beginning to budget one must pinpoint the sources of cash inflows and cash outflows. Having knowledge of personal financial situation is also necessary in managing personal finances. Most individuals would like to handle their finances so that they get full satisfaction from each available money (Grundowski, n.d.) To achieve this and other financial goals, people first need to identify and set priorities. Both financial and personal satisfaction are the result of an organized process that is commonly referred to as personal money management or personal financial planning.

In personal financial planning, there are different ways on how the monthly income affects the jobholders’ priorities. It is natural that a person is spending the available income to the priority set to live in everyday life and saving should be prioritized. In addition, there are circumstances that changes occur and spending is affected such as when prices of goods increase or decrease and an increase or decrease of salaries. Having such thoughts, this research will give an understanding on how a jobholder goes through

What you want and need—and how and to what extent you want to protect the satisfaction of your wants and need are things to consider on depending how will a person live and like to live in the future. Though there are different people, there are still common situations that influence the financial plans and may affect each person’s financial planning. Factors that affect personal financial concerns are family structure, health, career choices, and age. But first, what is personal finances? According in Investopedia, “Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning.” A person should consider the suitability of range of finances through personal financial