Setting a budget for all of our expenses is always a good idea because it helps us keep track of our spending and stop/curb unnecessary spending. Budgeting is one of the most important aspects of our financial dealings that aid the possibility of having a financially secure lifestyle free from overspending or unplanned investments that are beyond our capability.
In summary, it is impossible to overstate the importance of budgeting in helping us reach a level of independence and financial stability because it is the key to keeping our wants and needs in check before making purchases or paying bills.
As a man, I have many expenses and needs to satisfy for various people. Because of this, even though I am not married, I may spend all of my money without being able to track where it went. This made me think critically, which gave rise to the idea of creating a budget to control and manage my spending.
- Itemizing And Differentiating My Needs From My Want: One of the things that helped me and improved my financial situation was the ability to distinguish between what I need and what I want. Ever since I was able to do so, I've learned to give my needs priority over my wants in order to have enough money to take care of other obligations.
Prepare for a potential drought: Since nothing in the modern world is truly definite, as we all know, I always prepare for the possibility of a drought that could develop within the month and end up disrupting my plans and finances.
When making plans, I try as much as I can to think ahead to the possibility that I might not be able to find a job during the month, how I'll survive it, and the like. For example, the price of cryptography cannot be pinpointed to a specific amount.Put something aside for miscellaneous: As a result, I always make an effort to save money for unforeseen or anticipated events. For instance, no one can predict when they will get sick, and having a set aside fund stated in our budget can help us deal with these occurrences without it having an impact on our financial situation or savings and investing practices.
These article was prompted by the hive learners community feature topic that encourage us to talk about our personal budget, how it's been set up and the likes, you can go through @kronias post to get a full detail of the topic.