BUDGETING - A way that ensures wise spending

in Hive Learners4 months ago


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How you ever been in a situation where although you have spent a lot of money, you still can't account for how you spent the money ? and you become so unhappy because you find out that a lot of your needs that could have been met with that amount of money you had are still unmet.

Have you ever been in a situation where although you can account for how you spent every bit of your earnings, you still are unhappy because you find out that you have left the more important and imperative things and have spent the money on the less important and urgent things.

Have you also ever been in a situation where in one minute you have so much money and in the next minute, everything is gone ?.

We can all attest to the fact that at one point in our life, we have been in situation and we all know that these issues are largely as a result of the fact that we had no budget or our budgeting was improper.

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A budget according to Merriam Webster English Dictionary is ;

  • a plan for the coordination of resources and expenditures or
  • the amount of money that is available for, required for, or assigned to a particular purpose Source

As we can see in the first definition above, a budget is a plan and we all know the saying that anyone who fails to plan, plans to fail. As such it is important that at all times and for every expenditure we plan to make, we should make a budget for it else we may just have regrets at the end

Although sometimes I lose focus and get carried away by the excess joy and intoxication that comes from having money especially huge sums of money, most times I try to make a budget and plan for every of my expenditure.

So far, I must say that since I began making a budget for things I want to do, I have become more happy with myself and have spent my money wisely.

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In making my budget, I consider a few things like;

  • the importance of a thing
  • the urgency
  • the cost
  • durability and how it will appreciate or depreciate over time.
    etc

While I consider these above mentioned factors, when making my budget, I do the following ;

  • I first of all try to make a list of all the items I want and need in order of their importance.
    I also add to the list, some unavoidable expenses I would incur eg Logistics.

  • Then I calculate my net-income for the time. ( Income minus tax)

  • After I have known what my total income would be, I then allocate money to different items on the list.

This is how I allocate money for different items ;

  • I first of all allocate money for those things that are a must and are unnegotiable eg logistics or transport fares and food.

  • The next thing I do is to allocate a certain amount of money for savings and payments of debts . Most times I may take out 20 or 30% for savings

  • After that, the next thing in focus are those things that are important and urgent. Somethings can be important but not urgent so first of all, I focus on the urgent and important ones before the just important ones.

  • After allocating some money for the important and urgent things, I then focus on other important things, because of the fact that I may have several important things to do and the money may not be enough for all of it all, I try to spread the money evenly to every item and make sure the money touches different items.

  • The very unimportant items are always last on the list so I get to handle them if I have so much money to spare.

This is just how I make my budget and it has helped me alot. I now hardly find myself in situations where I get sad or confused because I realized that I've spent my money unwisely. The budget guilds my spending and ensures that it is done wisely.

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Budgeting is really important and I advise everyone to always have a budget before they begin spending. There are several importance of budgeting like ;

  • It helps us account for how we spent our monies
  • It helps us not to lose track of what we need to do
  • It gives us some sort of mental satisfaction
  • It helps us plan better
  • It helps eliminate unplanned spending
  • It helps us know all what issues we need to tackle financial and we don't have cases were things just arise spontaneously.

These and many more are the importance of budgeting. Do you always have a budget ? I would also like to know you make your budgets. Thanks alot for stopping by. God bless you.

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 4 months ago  

Well written bro, budgeting is indeed a way of life, it helps us plan for the future better and failure to budget leads to financial instability ❤️❤️❤️👌👌👌

 4 months ago  

Yea, thanks for stopping by bro. I'm so glad you got the point.

 4 months ago  

you are welcome bro..

 4 months ago  

Although sometimes I lose focus and get carried away by the excess joy and intoxication that comes from having money especially huge sums of money

I am glad to see that I am not the only one that feels this way. Money is very intoxicating! Whenever I get a large amount of money, I always lose focus and start spending it indiscriminately, but I come back to my senses after a while. That's the reason why I always make sure to have a budget before I receive any money, it has helped me greatly to be well disciplined when it comes to money.

 4 months ago (edited) 

Yes money can be very intoxicating and if you don't put yourself in check by having a budget. One may just end up regretting. Thanks alot for dropping by

 4 months ago  

From the look of things you obviously have your way around on how you Budget for needs by allocating cost of it to such items. I can relate to the first and second sentence because it happened to me and from what I perceived money is tool and can be misused when it's not planned for. That's why it's important we keep budget as a way to economize miscellaneous expenses.

 4 months ago  

Cases of people spending so much and not being able to account for how it is spent is very rampant. Over here we say it's the spirit of money and they say it blinds the eyes and takes away our senses. Thanks for stopping by. I am glad you could relate

 4 months ago (edited) 

There are definitely benefits when we make budget and it will really help us a lot. When we fail to plan, we plan to fail which is very true.

 4 months ago  

Yes and the benefits of having a budget is numerous. Thanks for stopping by. I really appreciate it

When we make budgets we find out just how much that we really need to spend, and also the ones we don't really need. This filtration will help us decide where our money goes. Thank you for these helpful tips.

Thank you for sharing this with us.

 4 months ago  

Thanks alot for stopping by. I'm glad you found this interesting