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By Selena Maranjian (TMF Selena)
January 18, 2002

Q. Why should I bother with budgeting?

A. Most of us would rather poke ourselves in the eye than sit down and plan a budget. Many would rather slam a door on their hand than actually live according to a budget. That's just wrong thinking, though. We should budget with delight. We should even have trouble getting to sleep at night, as we eagerly anticipate tending to our budget in the morning.

Budgeting can be very valuable because it permits you to optimize your spending. You might think that all is fine with your spending habits, but a little time spent on budgeting might reveal that you're spending a surprising amount on something that you don't care that much about. If so, you could tweak your habits and spend more money on things higher on your priority list, such as entertainment or investing.

Budgeting is even more vital if you're having trouble making ends meet. A little analysis of your spending patterns should show where your money is going and might help you see where you could cut back. Knowledge is power, and going through the budgeting process gives you a lot of self-knowledge.

To learn more about ways to save money and spend less, check out our Personal Finance area, which is chock-full of guidance on insurance, buying a car or home, paying for college, banking, setting up short-term savings, getting out of debt, lowering your tax bill, and more. We've got a discussion board devoted to budgeting, too.

This question and answer is adapted from The Motley Fool Money Guide: Answers to Your Questions About Saving, Spending and Investing. For answers to this and 499 other common money questions, check it out -- it's a handy resource.