The How and Why of Budgeting, Part I

It also helps you control what you spend your money on, so you get to do more of what you want to do, and less of what you don’t want to do. All you have to do is adhere to the budget as expressed in dollars. It’s like following a recipe.

I’ve found, in my interactions with accounting and tax clients, that the larger the organization, the more likely they are to have a budget. Sure, it makes a lot of sense for a larger organization to have a budget, as their finances are likely to be more complicated than those of a smaller organization or individual. However, anyone or any organization will benefit by having a budget since it’s an effective planning tool.

Especially in this day and age, when the cost of nearly everything is so high, it’s more important than ever to have a way of keeping track of your ability to pay your expenses. Not maintaining a budget can lead to complications, such as not having enough money to pay necessary expenses. In a society like ours in the U.S., not having enough money to pay your bills can be very unpleasant, not to mention humiliating. I know because I’ve been there. Even an accountant can have financial problems if there’s not enough money coming in the door. If you feel the way my wife and I do, you’ll want to avoid that situation even if it means having two jobs.

Author: Gary Krupa

I'm a CPA, married, with two cats, I play the accordion and speak French. I live in Sedona, Arizona in the Village of Oak Creek. I grew up in New York, and also lived in Southern California, the North Bay region of the San Francisco Bay area, and elsewhere in Northern Arizona. While in college, I introduced to the Accounting Society a corporate version of Monopoly called "Corporate Monopoly". Visit my custom website at http://garykrupacpa.com for very informative, interesting and up-to-date information about how to improve the state of your finances! It's where political correctness is kept to a minimum and financial helpfulness to a maximum.

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