The following article is an initiative of NSE and is intended to create awareness among the readers. 1/4 1. The first and the most important reason to plan a monthly budget is to limit over spending. You will learn to spend within your means and avoid getting into debt. 2/4 2. A monthly budget would mean that you have a portion of your earnings going towards your savings. This ensures you have an extra something for a rainy day. 3/4 3. A monthly budget will identify exactly where you are losing (wasting) money. It gives you a chance to curb your financial mistakes. 4/4 4. You learn to understand and differentiate between your needs and wants and prioritize your life.