A Budget Is Both A Plan As Well As A Control Tool

• In other words, anticipate what is going to be spent and formulate the strategy to cover the expense. With this action ipso facto controls are established, because both the consumption and the provision are visualized, ergo, the money management is delimited.
• Second, the budget becomes a control tool because of the comparison that is made between the planned and the executed. By contrasting these two realities the person manages to identify the assertiveness of his projection and the adhesion that there was to it.
• Therefore, to the extent that there is better planning and a disciplined attachment to it, resources are optimized. That is the maximum purpose of the budget. Achieve the greatest possible benefit from the resource money, making consumption decisions that go hand in hand with good personal planning.
• Using the budget as a control tool would seem a difficult task; because of what it means to do good planning and to assume the discipline of sticking to it. However, although in principle it may look uphill, it all comes down to the decision to take control of finances.
• This will be achieved by internalizing the value of money, when considering all that entails entering it into the individual coffers; That is when the financial perspective changes, taking a different direction to the one already undertaken. And the best way to achieve it is through the budget, because with it you can identify the neuralgic points of how it is being managed and the efficient way of re-cascading the financial resource.

conclusion –
Therefore, using the budget as a control tool allows you to turn the money management differently. Having as a goal the optimization of economic resources, allowing to generate financial stability