Planning Personal Budget To Boost Savings

Having a planned budget is importance to individual not just government and corporate organisation in ensuring a balance expenses with income.

For some people, personal budget is a passionate hobby, while for others it is a daunting chore. Either way, personal budget is being able to track spending, and saving is crucial if we want to get out of debt and reach our financial goals.

A personal budget or home budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available for creating, using and adjusting a personal budget. For example, jobs are an income source, while bills and rent payments are expenses.

Importance Of Budgeting Having A Budget

The managing director/CEO of APT Securities and Funds Limited, Mallam Garba Kurfi, said: “in achieving the year goal and objectives we set for our self, we have have a budget. Our budget must be based on our source of income, salary, business, among others. Budgeting on finance we do not have will give challenge and at the end of the day we will not be able to achieve anything.”

He added that, “we must consider how much we earn and how much we intend to spend, what our objectives and priority are. We do not work on anticipating fund but on money we are sure we will earn during the year.

“We must priorities our needs maybe children schools, house rents, gifts to family, among others. When we have a budget, we must adhere strictly to it. It is not that when the money comes, we divert it to something else.

“People that set up clear objectives, achieve better result and perform better and excel among their peers or colleagues at working place. Planned budget gives the direction of our spending.”

According to Kurfi, a clear budget gives us what we intend to do or the project we intend to embark upon during the year. Budget makes us disciple and prudent in spending.

Building  A Healthy Budget

“Identifying our financial plans is key as this help our understand the purpose of the subsequent steps and provides us with direction when it comes to our money. Do we want to save up for a family holiday next summer, among others? We may have short-term, medium-term, and long-term financial goals. With these goals in hand, we will be motivated to budget, automate your savings, and stay away from debt.

“We should make Sure our goals are ‘SMART’ specific, measurable, attainable, realistic, and timely, this will lead us to success. We should get into the habit of budgeting.

We should track our spending as this goes hand in hand with budgeting, as if we are not watching where our money goes each month, we will have no idea if we are adhering to our budget or blowing through it,” he pointed out.