Which of the following is a benefit derived from budgeting?

Budgeting offers several benefits, including:

1. Financial Control: Budgeting helps individuals and organizations maintain control over their finances by tracking income and expenses, ensuring that spending aligns with financial goals.

2. Goal Setting: It allows for the setting of financial goals, both short-term and long-term, and provides a roadmap to achieve them.

3. Resource Allocation: Budgeting aids in the efficient allocation of resources, ensuring that funds are directed towards priority areas.

4. Savings and Investment: By identifying surplus funds, budgeting encourages saving and investing, which can lead to wealth accumulation over time.

5. Performance Measurement: It provides a benchmark for measuring financial performance, helping to identify areas where adjustments may be needed.

6. Risk Management: Budgeting helps in anticipating potential financial challenges and preparing for them, reducing the risk of unexpected financial shortfalls.

7. Improved Decision Making: With a clear understanding of financial standing, better and more informed financial decisions can be made.

These benefits collectively contribute to better financial health and stability.