HOW TO CREATE YOUR MONEY BUDGET
If you work and earn money, then you have to find ways to make that money cover your needs.
Beyond that, you need to be able to save some money, which you will pile up to use for creating wealth.
Or do you want to be working and suffering for life?
Of course, not.
So you need a part of your money to go into building you wealth through investments.
Also, you need a part of your money kept aside in case there is an emergency, or maybe a financial opportunity.
For instance, an opportunity to buy highly valuable piece of land at a good price or maybe to buy stocks during a stock market crash.
So how do you make sure your money, which you are making now, covers all these?
First, to cover your expenses and needs.
Second, to cover your wealth building approach through investment.
And third, to cover your savings and emergency fund needs?
Well, that is easy to do.
You just need to create a budget, and stick to it.
And be financially disciplined enough to stick to that budget.
But first of all, the problem may not even be financial budgets.
The problem may be that you are not even earning enough.
If you see that the problem is that you are not earning enough, then what you need to do is go and learn extra skills, so that you will earn enough money.
That is because, if you don't earn enough, no matter how much you try to budget, it won't work.
But if you earn, at least a moderately good income, then you must learn budgeting so as to save, and so as to build wealth.
So this is how to create your budgets.
On your budget, first determine the amount of money you earn per month.
Write it down.
Then, determine how much you spend on your life essentials, like food, clothing, rent, transport, and education.
Write down all the money you need to pay for your needs that month.
Remember, it must be your needs only. No buying expensive cars, or going on expensive vacations, or buying of expensive iPhones.
You have wealth to build, not people you need to show off to impress.
Then, from all the money you have left after meeting your genuine and basic needs, take a small portion, add it to the amount you will spend on your needs.
That will account for any price increase that takes place during the month, or will be spent on enjoyment if there is no price increase.
Then take all the money you have left, split it 50-50 and put half into investments, and the other half into savings.
If you can split it 70-30 with 70 going into investments, and 30 into savings, that is evk better.
Do you see how simple this is?
All it will take you to do this is the habit called, financial discipline.
5 RANDOM PERSONAL FINANCE TIPS YOU SHOULD KNOW. 👇🏾
Avoid Debt as Much as You Can: Try to avoid debt as much as possible. If you're in debt, make a plan to pay it off. Don't be that person who borrows and forgets.
Start Saving for Retirement: It's never to late to think about retirement. Start now to benefit from the power of compound interest.
Invest in Your Financial Knowledge: Boost your financial knowledge by attending finance events, reading finance books, subscribing to financial newsletters. The more knowledge you have, the smarter you'll get about your finances.
Prioritize Health: Wealth means nothing without good health. Take care of your body through rest, healthy eating, and exercise.
Take a Break: Saving doesn't mean you can't enjoy life. Occasionally treat yourself to dinner, an outing, or even a vacation when you can, but do it responsibly...