By Ayesha Ashraf Jangda

Budgeting is a mechanism, which helps you to be financially in shape. Too often people make purchases without considering the financial consequences. Some people shop compulsively and then wonder why their wallet is empty. Living in moderation is the only way to earn financial security; it is a concept stated in a number of Quranic verses and Ahadeeth.  

“And let not your hand be tied (like a miser) to your neck, nor stretch it forth to its utmost reach (like a spendthrift), so that you become blameworthy and in severe poverty.” (Al-Isra, 17:29)

“And the slaves of the Most Beneficent (Allah) are … those, who, when they spend, are neither extravagant nor niggardly, but hold a medium (way) between those (extremes). (Al-Furqan, 25:63-67)

Budgeting is a comprehensive financial plan that helps you to:

live within your income,

spend your money wisely,

reach your financial goals,

prepare for financial emergencies,

develop wise financial management habits,

establish financial discipline,

feel financially secure about your present and future.

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