For most people, budget usually suggests a strict adherence to spending a designated amount of money on a monthly basis. In other cases, being on a budget represents a sacrificial lifestyle.
Research shows that three out of 10 people budgets their spending. In either case, maintaining a budget is viewed as rigid and simply boring.
“I am an impulse buyer, if I came across something nice that I like, I just buy it there and then, I have no time for budgeting, I live for the moment,” said a source who sought anonymity.
This has painted a colourful picture of why most people don’t budget and that has reflected that People spend money when they have it. And certain people spend more money when they have more.
Addressing the money side of your plans is always overwhelming and uninspiring. A spending plan for recurring mandatory bills and expenses needs, a spending plan for your entertainment, giving and other miscellaneous spending. Budget for debt freedom, these are the monthly payments to pay off your debt more consistently until your debt free.
A budget for investments, these include money going into your emergency funds and other investments monthly. A spending plan for recurring non-monthly expenditure such as school fees, Christmas, insurance or home improvements.
Living on a small budget doesn’t mean you have to give up the good life. Benefits of living on a budget are very profound. One of the most important benefits is that it addresses bad spending habits, it also ensures that you don’t spend money you don’t have.
Budgeting on the other hand It also helps to be prepared for emergencies and it also ensures a happy in retirement.
Building a budget force, you to take control of your spending habits. We never stop hearing about the importance of budgeting in our day to day lives and this is rightly so.
The substantial benefits far outweigh the time cost both in the short and long term. In our current market climate budgeting is more important than ever to ensure you and your family.