Is planning budget necessary if I’m saving a decent amount?

Planning a budget will help you know where your money is going. It will help you analyze whether or not you can save more by cutting your unnecessary expenses.

Of course, it is necessary to draft a budget even if you manage to save a decent amount per month. Creating a proper budget would cover the loopholes in your finances if any. You’d be updated about your present financial condition and become aware of your financial whereabouts. If you don’t know from where to start, take help of budgeting apps like Mint, Wally, Level Money, Spendee, PocketGuard, GoodBudget, Mvelopes, HomeBudget, and so on.

Well, you said, that you're saving a decent amount of money. But, how do you know that the amount you're saving is right? Did you consult with a financial advisor or consultant? If yes, then you're on the right way. But, if no, then you have to understand some important facts. Budgeting is important for those people who have less or no control on their expenses. For them, budgeting helps to track on spending and saving. If you're able to manage your expenses, then there's no need to keep a budget spreadsheet.

But, saving is mandatory for all. If you're saving a certain amount of money, then you have to think whether you need to save money or are you actually saving in a right way? There are many reasons why you need to save a right amount of money. You have to reach some financial goals like buying a home, car etc. You must have enough money to secure your retirement days. You have to build wealth to get financial peace, you must keep an emergency fund to fight back any emergency. Sometimes, people take help from budget to meet all these criteria. If your savings meet all these criteria, then you're actually saving in a right way. Another thing you have to keep in mind that, to save a good amount of money, you have to earn the right amount. So, I will suggest that you must consult a financial advisor to know whether you're saving the right amount of money.