There's a common saying that "failing to plan is planning to fail", just in the aspect of budgeting it is same . Budgeting is making a plan on how to manage our finances. As a business person If you dont have plans on how to spend money u end up spending it recklessly or ur business might fold . In budgeting, creating the plan is very easy but implementing what you plan is what is very hard. It takes  discipline and contentment to carry out effective budgeting . Effective budgeting  helps us to know our expenses, how to save and invest our finances well and most importantly help us avoid debts.