What’s your take about budgeting? Is it like a discipline such as dieting or preventive measure to get you out of debt? The truth of the matter is budgeting is a tedious task to do, but powerful weapon to build wealth and avoid bankruptcy.
Clear goals and self-discipline are just few of the essential in your budgeting quest. Whether you just like to own motorcycle or looking forward to buy a house and lot, it pays if you’re definite with your short and long-term goals. In this way, you would know the important steps in budgeting such as checking your expenses, boosting your income sources, and where to invest your money.
It is up to you whether you’ll use a budget app or the traditional notebook and pen, but jotting down your financial goals and obligations is helpful to track your progress.. If you want in-depth analysis, you can follow some companies that use budgeting software like MoneyDance and Quicken Ms Money. It is also recommended to note your expenses and sources of income so you would know where to adjust, what to cut from your expenses, and how much effort or time you need to achieve your dreams. It will also help you to gradually mend your bad habits that affect your productivity, positivity, and creativity. Let’s say you’re eager to quit smoking, with the help of monitoring your budget you will not only know how much money you spend, but also how many packs of cigarette in a week. In this way you can also assess how often you shop, how many packs of cigarette you smoke or how much you spend expensive coffee.
Saving money, even small amount, can do wonders as well. In fact, Pinoy Financial expert Francisco Colayco shared that keeping at least ten pesos a day can boost your annual income by 12%.
The big factor in budgeting is self-discipline no matter theory or app are you going to use. On the other hand, self-discipline can start with simple contemplation like buying what you only “need” and saving extra money for what you “want.” Budgeting will also help you to appreciate stuff according to their purpose and not because of their appearances.