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What do you do with the little you earn every month, i.e. how do you spend your money?
A 34-year old trader had for long believed that there was a diabolical force working against her finances such that her money "vanished" so on after she made any.
But on explaining her ordeal to a friend who is more financially literate, she learnt to list her expenditure on a daily basis to find out where things went wrong. She discovered after a week, that she had been living with the symptoms of un-budgeted expenditures thus falling victim to over spending, buying on impulse, bandwagon spending, financial indiscipline, lack of savings, indebtedness, deficit account, lack of investment and lack of planning.
Personal budgeting involves a conscious and cautious planning of one's income or resources in a way that any money spent can be accounted for.
Planning and implementing a budget is inevitable in an individuals quest to create wealth, hence the need to make it a personal lifestyle. Wealth creation begins with ability to stay within one's resources, for me I think financial discipline is a culture that must be imbibed by adults and passed on to the younger generation “as no one gets richer by eating up all he gets today or every month. Usually I devote some percentage for investment in shares and unforeseen situations, so that he can stay within his resource base. "Once any aspect of this allocation is used up, it has to wait till the next month to get an-other ". I earn N20, 000.00, that is not enough for my expenses still I save up to 25% of my salary, the rest I share it to take care of my pressing need, of cause from it I set aside 10% for Tithe infarct I do that even before my 25% is removed .
Now from my 25% I invest 20% for shares, “investing for my future because I think its very necessary and important for me”, the balance of 5% I save for unforeseen situations. But this is not the case with so many young adults, infarct some of them I have shared with told me that they try hard to budget their income but they were not good at it some times because they don’t have a fixed income and some times because they have a lot of need to take care of, but even though I strongly believe that they can still save, my financial counselors usually say no matter how much you earn, one should be able to set aside at list 10% of his income for investment.
Budgeting is sign of people who are financially disciplined. Sometimes, it puts one in a situation that hurts, but the long-term benefits are usually enormous. For instance; I could decide not to buy a new dress for my wardrobe for six or seven months irrespective of what anyone is doing.
Another trend on financial indiscipline that results in unplanned buying is buying to pay later with the extra costs it incurs; spending on wants and not needs. My Pastor says “what you don’t have money for you don’t need it”
Like I always do, I am very religious about my budget, not even my friends or anybody can influence it. I usually do a macro budget for the month and a micro to cover my weekly and daily needs, and the advantage derivable from budget planning among others, include stability in financial planning; ability to priorities needs in their order of importance; bulk purchase for home keep; ability to set aside specific percentages for investment and others.
Therefore friends all over the world create your wealth its very important, you should not wait for some one to tell you do it, pick up a challenge, it is when you start planning and investing that future can be very close to you. When someone says I can see my future he knows what he has planted it is a secret no one understand except you.
Join us, take that decision today and one day we will live a comfortable life of financial liberty.
Cultivate the attitude of budgeting
Learn to save for tomorrow
Invest part of your saving or income
Avoid the instinct to buy unplanned wares or on credit
Seek professional counsel on investment
Cherish your financial liberty
Love to hear your testimony
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Writer Profile
Stephen
I am Stephen O. Silas from Abuja Nigeria, I love to write short stories on positive topics.
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