Budgeting is one of the basic necessities of life in these times and seasons of human life. The ability to allocate scarce resources to satisfy unlimited human wants is an undisputed fact for the need of a budget.The benefits of budgeting are enormous aside from the financial freedom and liberty one can enjoy. Budgeting as a lifestyle is not a requirement for a certain class of people as the allocation of scarce resources is evident in the life of every individual, organizations and entities for their growth and development. One’s ability to be diligent with their budget creates room to save more and avoid unnecessary spending. Financial plans are needed in every field of life hence the need for a budget.
Facts about budgeting
Be consistent and intentional: the unlimited nature of the needs and desires of human and society makes it almost impossible to attain the financial discipline one needs and as a result of this, the habit of budgeting needs to be intentional and deliberate. The ability to stand your grounds in relation to how you spend your finances is one of the easiest ways to overcome the inconsistencies of budgeting.
Spend finances on what you need: The ability to decipher between what we need and what we desire to have plays a major role in budgeting. This gives one the upper hand to be able to spend finances on only pressing items rather than going in for things they can do without. To break the strong will and desire of man, one needs to put this in place.
Make your immediate family and the people it would have an impact on be aware of your decision : The influences of others can get people doing things just to please them. Therefore there is the need to make your close family and loved ones aware of this decision so as to prevent any of such people to mount pressure on you to go out of your plans just to make them happy. It is easy to find car loans online. Your ability to withstand the pressure of such people becomes easier when you make them aware of your decisions in relation to your finances.
Set realistic and attainable goals : The desire to make efficient use of funds and resources should be achievable and real such that one wouldn’t need to struggle to keep up to your habit of budgeting. Setting attainable goals will keep you at liberty to overcome the pressures of life.
Terms associated with budgeting;
Needs: These refer to the basic necessities of life that we cannot live without. These are things without which we cannot survive eg food, shelter, clothing, air etc
Wants: On the other hand, wants are the things we desire to have that are not mandatory to have. In other words, we can live without them. Eg perfume,laptops, cars etc
Saving : This refers to the act of setting aside a part of one’s finances set aside for future purposes. This mostly should be given the first consideration before spending any amount in one’s finances.
Spending : This refers to to the act of using part of one’s finances for the purchasing of their needs and wants