Budget is a spending plan based on ones income and expenditure.
Making an estimate or rough calculation of money made and spent over a period of time.
Without budget one would run out of money in no time and most times not doing the needful before spending all income on what is not necessary.
I would say Budget is a necessity for everyone that has a goal and wants to achieve one thing or the other else one would have nothing tangible to show for ones hard earned money.
How do I make my budget.
I simply follow something similar to "scale of preference", I usually make a list of things needed or or the things I want arranged in order of their priority or importance.
As a salary earner I do make a list of things I need per time before I collect my pay for the month, and I'll make sure I follow that lead without digressing, just as we know that human wants are unlimited and can't be satisfied so I wouldn't let my wants overshadow my needs I made sure I go for the things I need first and in the order of their importance.
Factors I consider when making my budget.
Firstly, I made sure that I cut my coat according to my cloth. Having known my income in a month, no matter what my need or wants might be I made sure I don't plan outside my income, everything must be within what I earn in a month. Based on my personality, I don't like owing someone so, I made sure I don't bite off more than I can chew, meaning I don't do beyond my capacity or do what is too difficult for me.
Secondly, I made sure that I attend to my needs before my wants, our wants are unlimited and can't be met completely so I do face my needs squarely e.g food, shelter, clothing etc before thinking about my wants. With that I don't go beyond context and makes me spend my income the exact way it should be spent.
Thirdly, I have a business plan so I make sure that every month immediately after receiving my salary I delegate a particular amount for my business plan. This is another factor I consider when making my budget, sometimes I prefer starving myself of some things just to make sure that I save up the amount I need to save for my business plan.
Above is just three of the factors I do consider in making my budget and also how I do make my budget.
Preparing a spending plan of one's income and expenses is very important and cannot be underplayed . Am glad not only because I have a budget but also because I follow it to the latter. Which I believe most people do too.
Thanks for reading.
