As adults who work tirelessly to earn and make ends meet for our family and ourselves, the need to be financially literate can never be overemphasized because, without such knowledge, we'll literally be living from paycheck to paycheck, which is quite ridiculous and could make things difficult and overwhelming for us. As an individual growing, I was once a victim of such until I learned so much about financial value, and that went on to change my story, and today I'll love to share that with you.
You see, several years ago, when I first started working, things were so difficult for me financially. Despite working, I hardly had anything to show for it a week after pay day, and I just couldn't help but wonder what I was doing wrong. I mean, there was this friend of mine at my workplace with whom we earn the same amount, and it's as though he's earning way more than I do because even if we meet at the end of the month before wages are paid, it's as though he still has enough to take him another month, and this made me curious about finding out what he's doing differently.
And after thorough observation of my friends and asking questions, I get to know that he's the type of person who, prior to being paid his wages, has already laid down his plans, that's, a budget on how he'll be utilizing the funds coming in and these acts of his help him analyze his needs, prioritize what truly matters, and even plan his spending so as to have reserve and not go overboard. I was thrilled by what I found out, although it's not the first time I've heard about budgeting. Prior to then, I never implemented it.
Instead, when I'm paid my wages, I just start buying things randomly as they come to mind, and even when relatives who knew when I'd been paid my wages called during that period, I sent them funds at will without cross-checking what truly matters and how I'd sustain myself before the next pay day. All of this makes me suffer, to the point where I usually end up having to take a loan from friends to survive after squandering my own wages.
Which means the other month already has a debt to be paid before I'll even focus on spending the remaining on my needs, wants, necessities, and wellbeing of loved ones, but since finding out my friends measures to sustainable growth and implementing them myself, I've come to see positive changes in the right direction.
The importance of budgeting goes a long way, and one of them is that it helps me teach my expenses so I can easily, via the budget, know how much I'm spending and where it's going. But one of the most helpful things about budgeting that I love is how it helps me manage my money. I already know what I'm supposed to earn at the end of the month, and before that comes in, I'll usually list out the list of necessities I must pay, such as the percentage of house rent to save, the utility bill, and then groceries.
Data subscription is another necessity because of my need to come onboard the hive daily and stay up-to-date with news and trends around me and my profession. After this, I can now highlight a list of secondary things, such as a want that I may want to buy, and these are usually optional; once I buy A, I'll most likely not buy B again until the following month, and so are budgets for my savings, loved ones, and transportation.
After listing all these budgets and seeing the total summary, I usually sit down once again and cut out something, especially when it seems like the budget has gone overboard. So, in a nutshell, the budget helps me have a clear picture of how my expenses will be and to set limits so I do not go beyond my capacity and struggle at the end. That means having a budget in some way instills discipline in us, because that's what it does to me. Sticking to the budget helps me manage my finances and expenses with seriousness, and it eradicates financial stress.
Since implementing this, I've had to live with less stress that is prompted by my financial expenses. Budgeting has taught me a valuable lesson of living within my means, which has gone on to help me manage my money diligently, and I've come to understand that when we talk about financial literacy, it's not always about earning; sometimes it could be as little as being knowledgeable enough to manage our finances.
Thanks so much for your time. I hope you' find this valuable. Have a wonderful day and stay blessed.
Thumbnail designed on canva