PURPOSE / OBJECTIVE
The purpose of a budget is to help you control your finances, make wise choices and to get more of what you want. It is not to make you aware of your "sins" and to shame you. Let's look at an example. Suppose you smoked two packs of cigarettes a day. You discover this costs you about $4000 a year. Wow, all that money on such a bad unhealthy habit!!! Oops, that is NOT the purpose of the budget. The value judgment is another issue and not part of the budget process. Further suppose that you have been drooling over a $1000 trip that you could not afford. But it occurs to you, that "If I cut my smoking only by a quarter, by half pack a day, to one and a half packs a day from two packs. That would free up about$1000 in one year. WOW! If I did this I could afford that trip!" This is what a budget is about: to help you control your finances, make wise choices and to get more of what you want - NOT MAKING JUDGEMENTS ABOUT YOUR "SINS".