Budgeting - What are the five purposes of budgeting?

Five reasons why budgeting is so important. Have set goals and objectives you wish to achieve. A budget can help you determine your long-term goals and put you on the path of working towards them. ... Ensuring you don't spend money you don't have. ... Ensure you are happy in retirement. ... It helps to be prepared for emergencies. ... Budgeting will help address bad spending habits.