Personal budget is one of the important documents that help in distribution and allocation of resources. It is worth noting that a people have problems allocating their resources. It is worth noting that people have problems in life, especially when they have jobs and many responsibilities. Individuals in some countries graduate with many debts, making it very difficult for them to allocate their limited resources and income. Life can sometimes prove to be very complex. As people grow, and responsibilities continue to increase, individuals tend to realize the importance of personal budget. Not keeping personal budget can lead to the adverse effect in life. In the general perspective, personal budget is the solution to most of the financial issues that individuals have.
Not keeping a personal budget is very dangerous because people in the modern society face a lot of financial issues. There are various reasons why people do not keep a personal budget. One of the causes of not keeping personal budget is ignorance on how to create it. It is worth noting that many people do not keep a budget because they do not know how to create it (Ryan, 2012). In addition, people have developed a myth that keeping personal budget wastes much time. In this case, individuals believe that the budget is complicated and consumes much time than expected. In the real sense, keeping personal budget is not complicated at all.
People in life feel that they should not be controlled by anything or anyone. These imply that most people do not keep a personal budget because they feel it will control them. A budget is a guide and ensures that individuals work with it accordingly. In fact, it takes away the negative freedom that could lead to financial problems. There are situations that people feel they have enough money to spent and personal budget is not necessary. A personal budget is tracking individual money yet some people feel they have enough. The don’t care attitude is also another cause of not keeping personal budget. It is the plain truth that some people do not want to have a budget.
There are various effects of not keeping personal budget. One of the effects is that it is will lead to the financial crisis. The fact that individuals without a budget cannot focus on how to spend the money in a responsible manner (Ryan, 2012). It is very easy for individuals to go broke when they do not keep a personal budget. Individuals who do not keep the personal budget have very low credit score. These are because they are not in a position to pay their bills within the time provided. Individuals could be having money and resources but lack of personal budget can make it easy to forget.
Not keeping personal budget strains the family members because one of the members of the family spends excess of what is expected and forgets the other members of the family. Presence of a budget ensures that the family needs and bills are paid within the best time possible. On the same note, not keeping personal budget causes health issues. The fact that financial difficulties leads to stress and depression (Ryan, 2012). Financial difficulties also breaks families and marriages. Studies show that financial problems are one of the causes of divorce in the world. In the general perspective, the analysis on the causes and effects of not keeping personal budget show that the budget is imperative document.
Reference
Ryan, J. S. (2012). Personal financial literacy. Mason, Ohio: South-Western/Cengage.
