Do I really need a budget? Yes, of course. To many people, a budget is to restrain your spendings, tedious to do and somehow feel de-motivated always that we cannot keep to the budget set. Hence, it is a dreadful financial exercise to put up a budget.
To some of us who already been keeping our finances in order or already living below our means, do we still need a household budget? And, for the luckier ones, who have a war chest of savings and debt-free, why do you want to spend time crunching numbers?
Don’t be surprised that you may find a household budget a valuable tool to achieve your financial objectives!
First and foremost, let’s understand what is a budget. Budget isn’t a tool to restrain your spending. Instead, it is a tool to help you manage your finances in order to achieve your financial objectives.
Budget is a financial plan which allows you to set objectives like 1) To cut down on spending or 2) To increase in saving or 3) To make your monies work harder for you or 4) all the three! It could well be a goal to upgrade to a bigger house or bigger car.
Budget can be a communication tool with your spouse on household spending and savings. It is always easier to talk numbers. It can also be a great parenting tool. I gathered this from friends who have teenagers at home, where they share the monthly budget with their children. They use this tool to teach their children about importance of money and when they ask for some expensive stuff to be bought! Budget is always a great way to manage expectation in any aspect.
Budgeting shouldn’t be tedious, it should be fun and a self-discovery process. Budget should be a plan which you can keep to it without feeling dismay. As the case may be, the numbers may well be a beautiful picture of your pink financial health!
Alright, so how do I do up an awesome household budget?
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