Navigating the Financial Landscape: The Importance of Budgeting
Keywords:
Financial Management, Income Management, Expense Tracking, Budgeting Practices, Financial Stability
Abstract
This study investigates the intricate relationships between income management, expense tracking, budgeting practices, and financial stability among customers of Bank Sumut. Utilizing a quantitative approach with a sample size of 90 respondents, random sampling was employed to gather data. The analysis was conducted using Smart PLS (Partial Least Squares) to examine both direct and indirect effects. The findings revealed the significant influence of effective income management on financial stability, both directly and indirectly through structured budgeting behaviors. While expense tracking was found to be essential, its direct impact on financial stability through budgeting practices was not significant. These results underscore the importance of promoting comprehensive financial management strategies, particularly emphasizing income management and budgeting practices, to enhance financial resilience and well-being. This research contributes valuable insights for financial institutions, policymakers, and individuals, providing guidance for fostering greater financial stability in an ever-evolving economic landscape.
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[5] D. Iverson, “Digital Transformation in Banking: Navigating the Technological Frontier Ravi,” Highly Cited Journa, vol. 4, no. 02, pp. 7823–7830, 2024.
[6] K. Kedward, J. Ryan-Collins, and H. Chenet, “Biodiversity loss and climate change interactions: financial stability implications for central banks and financial supervisors,” Clim. Policy, vol. 23, no. 6, pp. 763–781, 2023, doi: 10.1080/14693062.2022.2107475.
[7] K. F. Kubayevich, “Current Analysis and Current Issues of Ensuring the Financial Stability of the Banking System in Uzbekistan,” vol. 4, no. 3, pp. 169–176, 2024.
[8] S. Aramonte, A. Schrimpf, and H. S. Shin, “Non-bank financial intermediaries and financial stability1,” Res. Handb. Financ. Mark., vol. 2021, no. 97, pp. 147–170, 2023, doi: 10.4337/9781800375321.00014.
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[10] T. Eastern, E. Parliament, E. Parliament, and I. Conference, “Non-technical Summary,” vol. 2000, no. Igc, 2000.
[11] B. Farrukh, I. Younis, and C. Longsheng, “The impact of natural resource management, innovation, and tourism development on environmental sustainability in low-income countries,” Resour. Policy, vol. 86, no. PB, p. 104088, 2023, doi: 10.1016/j.resourpol.2023.104088.
[12] J. L. Howard, “Guaranteed Basic Income from the Perspective of Self-Determination Theory,” J. Manag. Stud., 2024, doi: 10.1111/joms.13075.
[13] N. S. Kubanza, “Analysing the challenges of solid waste management in low-income communities in South Africa: a case study of Alexandra, Johannesburg,” South African Geogr. J., vol. 00, no. 00, pp. 1–21, 2024, doi: 10.1080/03736245.2024.2356563.
[14] D. P. Broadbent, G. D’Innocenzo, T. J. Ellmers, J. Parsler, A. J. Szameitat, and D. T. Bishop, “Cognitive load, working memory capacity and driving performance: A preliminary fNIRS and eye tracking study,” Transp. Res. Part F Traffic Psychol. Behav., vol. 92, no. November 2022, pp. 121–132, 2023, doi: 10.1016/j.trf.2022.11.013.
[15] D. Fromm, “Insurance technopolitics: Car theft, recovery, and tracking systems in São Paulo,” Secur. Dialogue, vol. 54, no. 1, pp. 39–53, 2023, doi: 10.1177/09670106221141355.
[16] C. Fu et al., “Siamese object tracking for unmanned aerial vehicle: a review and comprehensive analysis,” Artif. Intell. Rev., vol. 56, no. X, pp. 1417–1477, 2023, doi: 10.1007/s10462-023-10558-5.
[17] K. Matsuoka and H. Tanaka, “Drive-by deflection estimation method for simple support bridges based on track irregularities measured on a traveling train,” Mech. Syst. Signal Process., vol. 182, no. January 2022, p. 109549, 2023, doi: 10.1016/j.ymssp.2022.109549.
[18] L. M. Wee et al., “A trailing ribosome speeds up RNA polymerase at the expense of transcript fidelity via force and allostery,” Cell, vol. 186, no. 6, pp. 1244-1262.e34, 2023, doi: 10.1016/j.cell.2023.02.008.
[19] L. Bartocci, G. Grossi, S. G. Mauro, and C. Ebdon, “The journey of participatory budgeting: a systematic literature review and future research directions,” Int. Rev. Adm. Sci., vol. 89, no. 3, pp. 757–774, 2023, doi: 10.1177/00208523221078938.
[20] J. M. Kinyanzii, “The Influence of Financial Management Practices on Financial Performance,” Asian J. Account. Res., vol. 7, no. 2, pp. 260–267, 2020.
[21] F. D. J. van Schaik, “Reconciliation of budgeting and accounting,” Public Money Manag., vol. 43, no. 5, pp. 473–482, 2023, doi: 10.1080/09540962.2021.2000693.
[22] K. M. Mang’ana, D. W. Ndyetabula, and S. J. Hokororo, “Financial management practices and performance of agricultural small and medium enterprises in Tanzania,” Soc. Sci. Humanit. Open, vol. 7, no. 1, p. 100494, 2023, doi: 10.1016/j.ssaho.2023.100494.
[23] E. Sulasmi, I. Prasetia, and A. A. Rahman, “Government Policy Regarding Education Budget on The Posture of The State Budget (APBN),” J. Lesson Learn. Stud., vol. 6, no. 1, pp. 142–151, 2023, doi: 10.23887/jlls.v6i1.60171.
Published
2024-06-09
Section
Articles
Copyright (c) 2024 Desman Serius Nazara, Linda Ayu Oktoriza, Rahimah Rahimah
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
