3.2. Living within your means – budgeting as a tool
It is important to develop a positive attitude about budgeting or it is unlikely that you will be successful
in employing this valuable tool. Think of it as “personal cash flow planning.” A budget is a tool
to ascertain cash inflows and to determine how you and your family can best meet financial obligations
and attain financial goals by allocating cash outflows. In other words, use a budget to tell your
money where to go. Preparing and following a budget will help you avoid personal financial crises
and, moreover, help ensure that your money goes toward what is most important to you.