Why is setting a budget important for your personal & business finances?
1. Ensures that there will be enough resources to meet your goals: either for all the recurring payments/other purchases you often make, or planning which initiatives and areas need more resources and which can be cut down.
2. Makes sure you don’t spend money you don’t have: avoiding unnecessary credit card debt is important for yourself and for your business. Sacrificing that spending spree now can save you a whole lot of trouble down the road.
3. Helps you prepare for emergencies: the pandemic has been a very prominent example of this. Knowing where your money is going and being in control of it is important in case your business needs to temporarily shut down unexpectedly, or you fall sick or injured, etc. It is also a weight off your shoulders in these stressful situations to not have to worry about money as much if you have a budget and a clear plan for where your money is going.