Budgeting 101: What is budget?
Budgeting 101: Part 1
What is budget?
I think when people hear word budget they think RESTRICTION! It is to a certain extent.
For a second do this mini mental exercise?..... You can be anywhere right now: Take a look around if you are home what is next to you what is around you, what are the things you truly don’t need to survive or make you happy? You are in your car, what are the things you don’t need in it, but you ended up spending money, or you are at work and you look into your hand bag, what are the things you really don’t need but again you spend money on?
We all day to day spend money on things which we didn’t really need, bought due to poor impulse control, and/or that $4 coffee you buy daily 5x week.
WE LIVE IN A SOCIETY THAT AT TIMES FORCES US TO BUY THINGS WE DON’T NEED TO SHOW FF OR IMPRESS PEOPLE WE DON’T LIKE. ß THIS NEEDS TO STOP!
Again, let’s do another mini mental exercise, imagine you stop buying things for 6 months and get rid of things form our home that don’t make you happy. What would change? Would you fall into depression over that pillow or plant stand? Most likely not. However, what you will gain is ability to breathe better, more time, peace of mind, which all equals to feeling of ease. It’s very difficult to letting go of things, trust me I know. Once you let things go you will start wishing you should have done it before.
Having a steady income is a must to budget, however there is no right or wrong amount. May people think that budgeting is for rich people, why budget if income is low. Some people think that if you have a lot of money you don’t need to budget because that income flow will always remain coming.
Life happens, you can’t NOT plan. Think of present and make sure your future is secure to the best of your ability and based on your minimal needs. In the next few posts over few months I will be sharing by TIPS for budgeting for beginners and how to advance!
Officially Welcome to BUDGETING 101 with Katherine!