I bet at one point in your life or every moment of your life for some,you've thought about how to attain financial freedom, even though what we term financial freedom maybe different for everyone, but basically, it should be about not living your life based on a 9-5 job, being able to afford the things you need or want without the fear of going broke.
The road to financial freedom isn't always easy, but it's a journey worth taking. And one of the most important tools you'll need to reach this destination is budgeting.
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What is a Budgeting?
Budgeting simply means having plans for your money. Listing out your expenses and income, it helps you monitor the inflow and out flow of cash which helps you makes adjustment where necessary by making right decisions that benefits your goal towards financial freedom. Without a budget, it's easy to lose track of where your money is going, which can lead to overspending, debt, and a general lack of control over your finances.
Budgeting is crucial for achieving financial freedom for several reasons
Do you have the habit of always wondering where all the money you had some few days ago suddenly can'y be accounted for, I've felt this numerous times without number and I'm sure you have too, not taking records of your spendings in relation to your income, makes you not know when to stop or adjust a little, no matter how much income you get, without a proper budget, you would always end up wondering where all of your money went which also means going broke or your account at it's red stage.
Budgeting helps us to identify areas we need to cut back on and rather helps us think of better investments or savings into which we can channel our money instead of expenses gulping all.
Also, budgeting helps us stay focused on our goal, whenever I put my mind to achieving something, I make sure to do my best to achieve it, and as someone that aims towards financial freedom, obtaining financial literacy in budgeting is a necessity, because it helps us stay on track on our goal, being in control and all. And know it's not just about financial freedom. For instance, I currently have a goal of getting a television for my children so as to keep them entertained before the forthcoming holiday where they would be home full time, unfortunately, the old one got damaged beyond repair and just lies as a piece of decoration in the sitting room which I'm not happy about, because the kids show, apart from keeping them entertained, also helps them in learning, especially for my little one who is in the kindergarten.
So the goal is getting a new tv, which is costly than ever before due to the inflation, I have to plan towards it, and planning involves, setting little money aside while I still clear daily expenses, but how would I be able to save when expenses keeping choking us everyday, budgeting helps me make adjustment, on the household expenses, also know when to say no to certain obligation, also known as sacrifice, all for the purpose of achieving that aim. This is why budgeting is so important in our daily financial lives and dealings
Are you the type that often go for a spending spree which you later end up referring because most of the items you bought are not even needed, budgeting helped us curtail this habit, as over spending often lead to debt, as a young girl, whenever my mum sent me to the market, she already has a list with the price tag to each, although these days, purchasing same item at same price within few days interval is difficult in my country right now, still, it is a habit I've grown to learn and adapt, too, at worst, I leave an extra change for inflated items, and if it way ahead my budget, better to leave it if I can do without it or find a cheaper substitute, not only branded items are quality you know.
Budgeting also helps us reduces financial stress, no doubt about money being one of the best stress causative agent, in relationships, marriage, even our personal lives, married or single, without money, you are constantly worried, either about how to earn, it meet up with
certain bills. A budget provides a sense of control and peace of mind by giving you us clear picture of your financial situation and a plan to guide us out of a situation..
Easy steps to creating a budget includes;
Tracking your income and expenses
Categorizing your expenses
Setting Financial goals
Creating a spending plan
Monitoring and adjusting your spending, savings, goals etc
All of which I have given a preview above.
To make budgeting more easier you might include,
- Involving your partner and family, sharing your goals and plans with them to avoid misunderstanding, like I told my husband to put a hold on getting more shoes for us this month, since we already have shoes to wear, let's try focusing on buying a television for now, thankfully he understands, and the children too, they are even excited about the new plan.
- These days, there are apps that makes budgeting lot easier for us, tables all set, just for you to fit in your details, for some of us that would want to blame laziness as the reason we can't budget, we can automate our finances, savings, paying bills,budget and all. No need for the manual stress.
The Road to Financial Freedom
Achieving financial isn't easy, yet, with discipline, patience, and a solid plan to reach that coveted state of financial independence., we should embrace budgeting as a fundamental tool in your financial goal, taking this crucial step helps us gain control over our money and align our spending with our goals and values.
There is no set rule to financial freedom, just make sure to follow the path of budgeting that works better for you. As you adhere to your budget and watch your savings grow, you'll experience a sense of freedom and peace of mind that comes from knowing you're in control of your financial destiny.
This post is inspired by the#MarchInleo Monthly topics, day 16, don't get stuck at not knowing what to write about, check out the announcement post for more info and be a part.