Monthly Budget
One
of the challenges that many people face is the temptation to spend money as they
earn it. The impulse
to start buying once cash is available is always there. I know a lady that
collects her salary and will
finish spending the entire salary in one day of shopping. This creates problems
and make one live above
his or her income.
Preparing
a budget before your earn money is a smart way of ensuring you do not overspend
or spend money
in things that you do not need. In the home this is very essential because you
will always have situations
where there are many needs contending for limited resources. So you cannot
afford to indulge in impulse spending.
Agree that you will always operate a monthly
budget and be willing to jointly implement it. No matter how busy you are, try
and plan your expenditure. It will help you against impulsive buying. Agree
that the money you make belongs to both of you. It is not “your money” or “my
money” but “our money”. It belongs to the family and because it is jointly
yours, the two of you will decide on how to spend it together. It is amazing today
that there are women who can give their bodies to their husband but not their
monies. Also, we have some men who can give their hearts to their wives but not
their pockets. If you agree that all money made belongs to the family, then,
the planning won’t be difficult.
A budget is simply a statement of how to spend
your income. Have a list of items you want to spend money on. Items that must be top priority on your
budget, should include for example, house rent, food, transportation, utility
bills like water and electricity, education, telephone, mortgage for car or
house if you have any, clothing, holiday, etc in that order. Allocate money to
the relevant items you have on your budget. With experience you will perfect
your funds allocation. This is your first step towards financial planning. The
money for food goes to the woman. She too should have a budget for food. You
may also need to include your extended family in your budget. Remember that
those who fail to plan, plan to fail.
Except you adopt budgeting “your take home pay, may not take
you home.” In your budget you must make provision for savings. You must
allocate to saving at least 10% of your basic monthly salary. Well, if you
think you cannot afford to save10%, try 5% or even 2%. The idea is just to
ensure that you cultivate the habit of savings. As your income grows you can
begin to save more than 10%. What do you do with your savings? You invest them;
this is the key to your financial freedom.
Your budget should be
all encompassing and you must not forget to budget for miscellaneous or
exigency. Some people have the habit of excluding some vital things in their
budget. Some parents for instance would not think of their children’ school
fees until January. It is then they will find out that their January salaries
cannot pay the school fees. That’s why so many children school fees are paid
late. Make adequate preparation for it through regular savings.
Before I began to save money, I had two children in nursery
school and could hardly pay their school fees as at when due. Imagine nursery
school fees! But as I began to save towards it, it became easy to pay and since
then, I have never delayed payment of school fees again.
If you budget your expenditure with your spouse, I see you facing less financial quarrels and having a more peaceful marriage.
Femi Imevbore
+2348080929292
femiimevbore@gmail.com
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