Budget right and tight

The definition of “Budget” is : An estimate of income and expenditure for a set period of time (according to google at least).

This short essay will discuss :

goals

managing expenditure

boosting income

consumer vs. producer mentality

unforseen circumstances

Goals.

first of all, you have to determine your goal for budgeting, is it to buy your dream car?, is it to get your husband a gift?, or is it to start your own business?. And how much money do you need to achieve this goal? how long is it going to take you? what steps and strategy’s are you going to implement to help you reach this goal?

Setting a goal is crucial as it will act like your compass and without it you will go astray, spending money left and right like there is no tomorrow. on the other hand having a goal will make the budget easier to follow as it will make you stop and reconsider before making any reckless purchase or payment

in order to to make your budget successful you will need to prioritize your spending, and postpone buying some or all of the very expensive items you have on your mind. You might also have to let go of the luxurious lifestyle if your living one. you have to stick to basic needs; e.g. if you live in a 3 bedroom apartment but you only need 1 room, then consider moving to a single room apartment. if you have a big car that needs tons of gas money and is not so economic, then consider swapping to for a smaller 1.2 Liters car that doesn’t require much fuel and that doesn’t drain your pockets. if eating outside or at your work is expensive, you can make your own meals, this would save you tons of money over a few months period. You get the idea, just remember don’t be shy about saving money, and don’t feel embarrassed for rejecting your friend’s request to go to a fancy restaurant. Also know that no one has the right to judge you if you just order water or the cheapest dish or drink on the menu.

Boosting income

you can only save so much, but you can always increase your earning ceiling and capacity. Budgeting and saving money should only be a temporary solution to enable you to have enough money/capital to start something. Like starting a business or investing in skills that have the potential to help you increase your earning capacity. work on your self, develop your character, start putting time into skills like sales, if you can sell something, anything, then you will never be poor. or Coding, Editing, writing, these skills are also guaranteed to get you paid a decent amount on the side.

consumer vs. producer mentality

if you can stop thinking like a consumer, who is constantly looking at things with the mentality of buying them and wishing he had them, and start thinking like a producer who sees any product from the perspective of a seller, a manufacturer, a producer, as something that is going to earn him money. then you will start seeing opportunities in everything around you, and your creative side will come to life to make use of these opportunities.

Unforeseen circumstances

things could come up in our lives, and plans can get disrupted. That is why you should always have a reserve of backup cash, or savings which serves to help you with any sudden payments that you didn’t see coming and it also helps put your constantly worrying internal animal at ease. This amount is usually 10% of your monthly income that you put away and never touch it, it’s not for buying anything and you can’t touch it except in emergencies