How do you feel when you don’t have enough money to do or have things you want? Pretty frustrating right.
Going about your business in life without having a budget is synonymous to looking for a friend in Lagos without proper information regarding the route to take. While both can be accomplished, the result is usually expensive or wasteful.
Many people view budgeting as restraining; restricting them from what they want but think about it, why wouldn’t you want to be in control of your expenses?
What is a budget?
A budget is a process of creating a plan to spend your money – emphasis on your money. This plan helps you monitor your inflow and outflow. The essence of having a budget is to improve your financial health and meeting your financial goal.
Why is budgeting important?
Now look at Dangote, Otedola and Alakija. do you think they have a budget? Don’t over think it because they do. There is no successful business around the world today that does not believe in having a budget.
There is a general complaint by some people who claim they can’t create a budget because of the economy – they can’t ascertain how much they would spend. A typical example is the Lagos story. A city where transport fare is determined either by the weather or the mood of the higher-ups at the park. Instead of focusing on whether fares will go up or down, you have the knowledge change is constant when it comes to transport. The question is simple, where does your money go?
- Do I really need that premium Netflix subscription even with my limited time (8am-5pm)
- Premium gym membership – just one visit in a month, no difference in shape but the debit keeps rolling in
Benefits of budgeting
- Reduce stress – your financial health is 100% assured
- Aligns priorities – enables you work towards major goals
- Grows savings – you get to have that much needed financial buoyancy
- Accelerates Financial goals – whatever you need to save up for, you get to achieve major financial goals
- Acts as a roadmap – gives you a visual representation of expenses
Be real with your budget
The main goal is to make sure your income helps in all aspects. That is, even after paying necessary expenses, you still have some money left-over for your own flexibility – miscellaneous.
The kind of budget you choose can be dictated by many factors including your long-term goals, your age, expense and current living situation. The key is to find a system and breakdown what works for you.
Review your plan every month. Adjust it as your income and expenses change.
If you need a professional financial adviser to guide you in budgeting, or you have too many expenditure variables that you are finding it difficult to adequality budget and stick with it, then our FREE financial consultation might just be right for you.
At Page Financials, we understand that financial literacy is the basis of what we do, so we have experts who are ready to help you understand finance and how to handle it.
This service is completely FREE, all you have to do is call our number; 016317243, or send an email to firstname.lastname@example.org to get help on any finance related issues.