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...e would use it. With a budget, a person can organize and control their financial resources, set and realize goals, and decide in advance how their money will work. The basic idea behind budgeting is to save money up front for both known and unknown expenses; if a budget is used correctly it can be a very powerful tool in a person’s financial management. When used correctly a budget has many benefits. For example a budget helps you know what is going on with your own personal finances. “Knowledge is power," as the oft-quoted saying of George Eliot goes, and knowing about your money is the first step toward controlling it (Credit Card Diva). Another benefit of budgeting is preparing for financial emergencies (Kapoor 80). When a person budgets their money properly they know just how much extra income that they have for a said month. This is important because if a crisis happens that person is not financially “strapped” and can take care of the emergency without a great financial burden being on the person. One last financial benefit that comes from budgeting is spending reallocation (Creditreporting.com). Spending reallocation simply means knowing the areas of your spending that is detrimental to your financial future and spending that money in a wiser manner to help out your future financial planning. To put it more simply, stop buying things you want and ...