It is becoming a mantra by most financial gurus that , if you want to make it and be successful financially, you should always budget. Budgeting is basically a process of creating a plan to spend your money. You may wonder, why do I need a plan to spend my own money? Well, if you want to be financially independent and build wealth, you have to be begin with being financially discipline and budgeting is your only way out.
Budgeting can go beyond your personal budgeting to family budgeting where you involve your entire family’s income and expenses. My wife and I started it, it was tougher from the beginning but it got better and better. Knowing the WHY about budgeting inspires me a lot to keep doing it.
1. Budgeting helps me save for investments. Sometimes, saving or stashing money away for investments can be hard when you have a lot of things competing for the money. Sitting down to budget for a particular month gives me a clearer view of what I need, what I want, and which of these are really priorities. This exercise of budgeting helps me manage through all the numerous expenses to apportion money for investing first before I spending.
2. Budgeting stops over-spending. Believe it or not, sometimes you overspend. You borrow monies from your future, from funds you set aside yourself for other purposes like Children educational fund etc. and even borrow from friends to cover expenses – Over-spending! The best way out is budgeting. I guess you have noticed by now, I didn’t even write anything about being discipline with your budget, yes, we will get there soon. But for now, develop the habit of budgeting.
3. Budgeting stops you from worrying. I will be quick to state that, for the men who engage their families or simply put, wives in the budgeting process, you gain the power to control the budget. There will be no worries because you set the restrictions yourself and once you do that, you need to stick to them. That is how good budgeting is. With the family involvement, everyone is going to be held accountable by the budget hence no one can go beyond. that is your way out bro. 🙂 Try it. When the demand comes all you will say is, “Is that in the budget? if not, put it in the next month’s budget.” That’s 2 years of life you have bought for yourself by not worrying unnecessarily.
So now that you know, let’s find out more on how to budget and make it useful to us.