Why is it important to distinguish between needs and wants in budgeting?

Budgeting is the systematic process of preparing detailed short term plan of actions expressed in monetary values. The plan quantified in monetary terms prepared ahead of a defined period should show expected income and expected expenditure. A budget should also fulfill a planning purpose and a control purpose (underlined by the comparison of actual resultContinue reading “Why is it important to distinguish between needs and wants in budgeting?”