What Is the Purpose of Budgeting?

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The main purposes of budgeting are resource allocation, planning, coordination, control and motivation. However, budgeting is also an important tool for decision-making, monitoring business performance, and forecasting income and expenditures. With proper budgeting, it can be easier to manage limited resources efficiently. But what does this mean for you as far as your personal finances are concerned? Take a deeper look at the role of budgeting and how it can transform your financial health.