What? I’ve tried it many times. Doesn’t work. I just can’t stick to it. You need to be very disciplined to make it work. Budgets don’t work. It might work, I haven’t tried it yet – These are common reactions I get when I talk about budgeting to somebody. You know, it doesn’t have to be hard to tedious. Yes, budgeting needs a little bit of discipline, but it’s not hard as you think. A bit of planning, a bit of discipline and Walah! Budgeting becomes easy.
Most people simply budget for their needs. $1000 for rent, $300 for utilities, $300 for food, $150 for car payment, $100 for insurance, $200 for gas, and $300 for savings. This is how most people budget. But, remember we are humans. We have wants. If you are budgeting for a business, it is okay to budget only for needs. Businesses don’t have wants. But, people do. And, most people look at that extra $300 dollars at the end of the month and buy clothes, stereo systems, music cds, shoes, etc. and end up with zero or negative balance at the end of month. Then they wonder, I budgeted. I even followed it, It doesn’t work. I have no savings to show for it. But, they hadn’t budgeted for wants.
While budgeting, it is very important that we take our needs and wants into consideration. Out of $300 savings, take $100 and put it towards your wants. Plan early what you want, and budget accordingly. This way, you will have some money in your savings account.
Hope this helped. Looking forward to reading your comments.
Respectfully,
Mayur
Tags: Budget, Finance, Money Management
