PLAN YOUR BUDGET, PLAN YOUR LIFE: FACTORS TO CONSIDER #1

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Good day to you and everyone reading this post, I have decided to make a series of posts on BUDGETING, starting with this, which I labelled #1. I would be sharing this (#1) in relation to and as a submission for the first topic for this week

I strongly feel that financial budgeting is not a skill learnt overnight, it is imbibed over a period of time, it takes learning from experience, understanding financial principles and accurate financial analysis. This is one of the greatest skills you can learn to develop, in view of that, this will be my first post in the series as regards financial budgeting

Let dive in👇👇

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Let make some things clear

Life doesn’t come with a manual. You have to figure out different things on your own. Spending money, managing your personal finances, and budgeting are all things that you won’t learn in school. But don’t worry! If you’re reading this, there is a high probability that you also know next to nothing about these things. Personal finance isn’t something most people can understand easily or become interested in learning more about. Over the past few months, I have been working on improving my financial situation and read many books on the topic to do so. This article covers some of the basics of personal finance and includes detailed budgeting strategies for improving your financial situation.

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What is Personal Finance?

Personal finance is the study of money and managing one’s resources to obtain the most value. When you think of personal finance, you often think of money. If you don’t have any money, you can’t do anything with your life and you won’t be able to achieve anything with your life! (yeah that is blunt, but it the simple truth, in most cases a bitter pill to swallow)

So, personal finance is all about learning how to create and control the flow of money in your life in order to get the most value out of it. There are many components of personal finance and I will cover the most important ones.

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The Basics of Budgeting

Budgeting is the act of determining and tracking the amount of money that you have available for different expenses throughout the year. Your budget should be realistic, but also be ambitious enough to push you to become better with money. You can’t be afraid of exceeding your budget. When you set a budget, you are setting a goal for yourself. This budget should be written down somewhere where you can see it often. You should also keep your budget in a visible place like on a piece of paper or in an app so that you can easily see it and not lose track of it. Budgeting is important because it helps you get a better idea of your finances so that you can make better decisions with your money. It can also help you to build savings and prepare for unexpected expenses. If you have a budget, you can easily see where your money is going so you can avoid overspending. Not only can it help you manage your finances better, but budgeting can also help you make more money with your blog and online business.
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Why is Budgeting Important?

Throughout the course of your life, you will experience many different events. Some of those events are going to require money. Some of those events are going to require you to pay for your child’s college tuition. Some of those events are going to require you to buy a new car or a new house. At some point or another, many of us will find ourselves in one of these scenarios. If you don’t have a budget, you will be scrambling to find the money to pay for those things and it will be very stressful and difficult. On the other hand, if you have a budget, you will know exactly how much money you have for those events and then be able to make better decisions about what to spend your money on.
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How to Get Started with Budgeting
  • Set a goal - If you have no idea where to start with your finances, it can be very overwhelming. Setting a goal can help you get started with budgeting. What do you want to accomplish with your finances? What do you want to save for? What do you want to spend on?

  • Create a spending plan - When you set a goal, you have to have a plan on how to get there. Budgeting is a lot like having a spending plan. It’s a plan on how you will spend your money. You must see all of your expenses and know how much money you have for each one.

  • Track your progress and adjust your plan - Once you have created your budget and are aware of your expenses, you will want to track your progress. You will want to track how much money you have left at the end of the month compared to how much you started with. This will give you an idea of where you are in your budgeting journey and allow you to adjust your plan accordingly.

  • Avoid debt- Over budgeting is one of the most common budget pitfalls. If you are constantly going over your budget, you will end up in debt. Over budgeting can also lead to stress and even depression. If you constantly feel that you are short on money, it can be very stressful and take away from your overall quality of life.

  • Learn to live within your means - Budgeting is an important skill that will help you to better manage your finances and avoid debt. However, it takes time to fully master this skill and you will have to be patient with yourself.

Techniques for Better Financial Planning

There are many different strategies that you can use to budget, but the most common and effective budgeting strategies are the ones that you develop on your own.

Here are some of the most common budgeting strategies that you can use.

  • Create a monthly budget - The first budgeting strategy is to create a monthly budget. A budget is simply a plan on how you will spend your money. A monthly budget is simply a plan on what you are going to spend every month. A monthly budget is great because it is easy and convenient to use. It is a great way to start budgeting because it is simple and straightforward.

  • Create a weekly budget - The second budgeting strategy is a weekly budget. A weekly budget is great if you don’t have as much money or want to save money on certain things. This can help you to see where you are spending money and where you shouldn’t be spending money.

  • Create an ongoing budget - The final budgeting strategy is to create an ongoing budget. An ongoing budget is great for people who have very little money, but also want to make progress and build savings. An ongoing budget is one that you make every month and then stick to.

  • Challenge Yourself - The best budgeting strategies are the ones that you develop on your own. The best way to develop these budgeting strategies is to challenge yourself. Find something that you don’t have much money left for and then challenge yourself to spend less than the remaining amount.

Conclusion

Budgeting can be very beautiful and no doubt important
When it comes to personal finance, there are many different things to consider. For example, you need to think about the different types of money that you might have, what they are used for, and how they are controlled. You also need to think about the different places that you might be spending money, like your house, your car, and your credit card. These are just a few things that you need to consider when it comes time to budgeting. If you start thinking more about your finances and how to better manage them, you will be able to make better decisions with your money and get closer to achieving your financial goals.

This is the end to the first post in this series of budgeting

Thanks for reading🖐

Also special thanks to @hivelearner and @lazy-panda for all curations

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SEE YOU IN MY NEXT POST SAYONARA 🖐



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6 comments
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Undoubtedly, there are parameters and rules to be followed for good budget management.
We should take these principles to heart and we should only spend more when we can and that we know will not affect our essential goods.
We have to be smart, disciplined and above all responsible for a good budget.

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There is always a nitty gritty to every situation and that includes budgeting efficiently

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Outstanding debts and bills should be one of the basic things taken care of by the budget. Because as long as they are out there, they will always be a minus for us.

Thank you for sharing this with us.

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