Yes, i understand, nobody likes talking about money. It bores most of us to the point of tears. However, if you never learn how to cultivate a symbiotic relationship with money, you will indeed reach desperation levels to the point of tears. Its just one of those grown up things you have to deal with, like eating your greens and actually going to work early in the morning. (😒)
So lets get to it. Contrary to what most people think, making a budget for your money is not about sucking all the fun out of your life. Nope. Budgeting just means that you know where your money is coming from and you know where it is going and how much. You can budget to have the craziest fun in your life as long as all your other needs are catered for. Budgeting just helps you to pay more attention to your money and, like a child smothered with attention, your pockets will bulge with goodness and your mind will be at peace.
Budgeting also helps you to actually reach the important goals you set for yourself. Maybe you've always wanted to start that bakery of your. Well, you'll never reach that goal without a budget since it helps you save.
So here are some easy step to start budgeting.
- Make realistic goals.
You dont have to strip yourself of materialism to the point of monk status just because of a budget. Make a budget that allows to save and get to your goals but also enjoy your journey there. First, find out what is important to you and include it. This could be starting a business or helping a family member go to school. Its all up to you. Then set a realistic and timely plan. You dont have to raise the money you need in just three months! Such unrealistic goals only set you up for failure and disappointment. Spread it out evenly throughout the year. One other nifty trick is to budget for having fun. This prevents you from dipping your hands in your savings everytime you have a coffee date. - Track your money.
Jot down all the places your incomes come from and all the places or items you spend your money on. This my be difficult, especially tracking the expenses, but getting this data will help discover what most you spend your money on and you can decide what changes need to be made. - Decide between needs and wants
Now it is time to prioritize. Decide the things that need your money's attention and the thing which can wait. Now go ahead and design your plan with the needs (those things that are essential) as the priority. These may include rent, food, educational fees etc. The wants may include shoes, red sports car, iPhone. These things can be postponed or spread out through the year to be attained at a later date. - Stick to the plan!
Discipline. No one ever succeeds without discipline. Stay true to your budget plan. Since you did not deprive yourself of enjoyment and included a little of it in the budget, there is no need to despise your budget or to go behind it's back because ultimately, only you will suffer.
Nobody really enjoys budgets, or money subjects, but money does make the world go round and most of the things in life will need money to get. So its best for you to learn how to manage money and make it work for you. Best of luck.