By dividing your money into categories of expenditures and savings, a budget makes you aware which category of expenditure takes which portion of your money. That way, it is easy for you to make adjustments. Budget also serves as a reference for organizing your bills, receipts, and financial statements. When all of your financial transactions are organized for tax time or creditor questions, you save time and effort.
Makes you decide in advance how your money will work for you.
Helps you to save for investments and avoid unnecessary interest payments. Avoiding debt and interest payments saves you money.