Assignment 3.1 Determining Causes and Effects-Draft Version
Prof. Dennis Millan
A personal budget is one of the several important considerations which are maintained to avoid personal financial crisis. It helps in tracking the budget and understanding the level of financial stability one has. It admittedly gives out a road map for financial stability for the people who are unaware of the finances, and are prone to spending a lot of money.
This paper critically analyses the cause effect relationship if one does not maintain a personal budget. This paper tries to understand how not maintaining a personal budget affects personal finances and in turn the global finances. Do banks in general get affected if one does not maintain a personal budget? The paper thoroughly moves from causes that lead to not maintaining a personal budget to the effects of not maintaining a personal budget. It also tries to find out how critical things become in case a person decides not to maintain a personal budget.
Causes: Major and Others
There are several grounds on which a person is unable to, or does not maintain personal budget. These grounds have been severely reiterated by people across banking industry in order to govern and showcase a more stable and sound economy on the whole. While the reasons are many, one major reason for not maintaining personal budget can be attributed to avoiding planning. When a person decides on a budget, they have to plan their finances and spend within the set limits.
This is why most people don’t prefer maintaining a personal budget. Spendthrifts among them are the most probable people who don’t like maintaining a budget. A sound and planned budget affects the spendthrifts, and they need to come out of their mode of denial in such cases. This is one of the main reasons for not maintaining a personal budget.
When one is able to measure the amount of finances, they are currently in possession of. They can plan...