The majority of people today are not living on a personal budget. The availability of credit has allowed people to purchase what they want, when they want, with little regard to whether or not they can actually afford it.

A major advantage of living on a budget is that it relieves a great deal of financially related stress. It's always fun to spend money at the time of purchase but it is not nearly as much fun when the bill comes do. When this happens, some people resort to using credit cards to pay off other cards. Other times people pay their bills and then choose to obtain "payday advance loans" to get them through until the next check. Both of these situations cause a vicious cycle of debt and growing interest. A budget can help ensure that an accumulation of debt is prevented and money will be available throughout the entire month.

Another advantage associated with budgeting is that it allows an individual to regularly place money into savings plans. This will allow the person to enjoy a comfortable retirement when that stage of life rolls around. It will also provide a financial cushion to cover any emergency situations that may arise.