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Budgeting And Saving - Coggle Diagram
Budgeting And Saving
Advantages
view your spending
track how much you are spending
stops you overspending
meet your budgeting objectives
improves your budgeting skills
strengthening your will
improves decision making
lets you plan for the future/when you reach adulthood and have greater financial responsibilities
helps prepare for emergencies
monitor your performance over time
helps you identify your disposable income
Disadvantages
may be Inflexible/not allow for things that you can’t plan for
time consuming to create a budgeting plan
income and expenditure can change over the month
can be stressful/depressing and make your more anxious about your finances
if not done properly, it can damage your finances
set yourself an unrealistic target
if you are inexperienced/haven’t done it before it can be be difficult and time consuming
may encourage a unhealthy culture of self blame