Paper Summary:

This paper uses examples from Ivan Cintron's article, "The Art of Savvy Budgeting" (2000) to emphasize the importance of sound budgeting. According to the reviewer, some of the most important factors identified in the article are the need to commit the process to paper (or a computer-based application), being honest and thorough in the budget development process, and eliminating unnecessary expenditures wherever possible. The paper concludes that the importance of a personal budget to individual financial success is imperative, and fortunately, it is something virtually anyone can do with a little time, effort and self discipline.

From the Paper:

"The importance of a sound budgeting process cannot be overstated. Indeed, the current economic fiasco that the world finds itself in today did not happen overnight and it did not happen by accident. Most authorities agree that the financial meltdown being experienced by businesses and governments around the world is attributable to poor financial practices that ultimately involve the budgeting process. Unlike many businesses and most governments, though, individuals are unable to simply borrow more money (or print it), and must make do with the resources that are available. Because resources are by definition scarce, understanding how much money is coming into a household and what routine expenses are required to keep it operating just makes good sense. Certainly, there are also unexpected expenses that can wreck even the most thoughtfully formulated budget, but even here there are steps that individuals can take to plan for such eventualities in the budgeting process. When the budgeting process is done well, people can free up resources they may not have realized were available for more important applications such as investments."

Sample of Sources Used:

• Cintron, Ivan. 2000, May. "The Art of Savvy Budgeting." Black Enterprise 30(10): 76.

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