Guest Contributor | Feb 20, 2024 | 0
Why budgeting is so important
The key to spending within your means is to know your expenses and to spend less than you make. A budget plan is used so you do not fall into debt and if you are already in debt it helps you so you do not fall into even deeper financial predicaments.
Its high time we all consider budgeting which confines people to spend money wisely in needs but not wants. Money is to be handled with care for sustainability, it should not be splashed away.
We need to cut costs for example, “you get paid on Friday and Tuesday you have no money to get to work.” That is not how it should be ,what you need to do to be successful with your personal finance budget is make out a projected budget plan for the whole year. Then as each month goes by you can make individual monthly adjustments.
Keep track of your actual income and expenses and compare it to your personal budget. To make sure your estimates were correct or at least close. The great thing about budgeting is that it helps you from needing to use credit cards, which again are an expense.
Savings should indeed be considered as an expense, people should set up an amount of their income that should go into savings. Note that budgeting keeps our spending in check and prevents us from falling back into debt.
It should be noted that it is very important for people to talk to the financial managers on money matters and also seek information on budgeting. I believe that budgeting is very important, it can change the way you live as there are things you can cut out of your life that can save you a little extra cash.
One can also look into having a one year plan as a financial goal. You will know what you want to accomplish and how you are going to accomplish it. Make a list of how much money comes in and out every month such as mortgage, car payments , insurance, food, petrol, utilities, personal things etc, then this way you can know how much you are saving or investing for short term entertainment, going out with friends or long term entertainment such as vacations.
You must keep record of all your finances and knowing what you are spending and investing on and a net benefit will count in your favour. Good budgeting helps understand expenses and know where the money goes.
Budgeting is a great way to realise possible avenues of minimizing expenditure. It provides room for contingencies and provides unforeseen circumstances. Let us become financially responsible and have a budget plan.