The best way to define a household budget would be; a plan that outlines out how the income of a given household is going to be spent, in a bid to achieve the needs the needs of the house in line with the income. When I look at my budget, I am convinced that my household needs are proportional to my income. I being the planning expert for my household budget, I am in a position to evaluate the various expenses that are urgent and important, and at the same time determine how I will allocate the funds for these expenses. The budget hence enhances clarity on my income in that I will see every coin that I have budgeted for utilized and the remaining channeled to other activities. The main reason as to why I choose to have a household budget is that, without one, I am a spendthrift. I spend my money without any idea of what I have spent my money for hence being left with debts and spending of my savings.
The amount of income that one earns is the foremost factor to consider when analyzing and formulating a budget. When one places the pay slip on the table, the first thing one should look for is the figures that appear on the payslip. The income opens room for self-arguments that are to balance the income and the income that one earns. When I analyze my household budget for the previous month, some thoughts cross my mind. The amount of money I had projected for the various needs in the house was relatively higher than the actual figures. Nevertheless, I did not see that as a complicated issue. , However when it comes to the second month, the projected money is higher than expected. Though the needs have slightly increased, I feel that the money I have spent has gone too high compared to the previous month.
Well, I do agree that the savings are commendable but I feel I am overspending. For example, on the miscellaneous expenses, I see too much money is being spent on what I would term as luxuries. However, the second month budget has saved mi a lot compared to the previous month budget. Also, the second month has seen the reduction of money spent. When I compare with the last 30days, the rent I used to pay for the house was far much expensive. When I compare with the second month of October, the rent has reduced by half. The whole idea has been brought about by moving to different house, with the same services as the previous one, but with a favorable cost.
The October budget has improved my standards such that am spending a little amount of money but for the same services. All these are just but a matter of concentrating on the most urgent and important needs in the house while else the less important get the least priorities. I believe that a budget that is proportional to the income that one earns is the key to achieving the financial dreams. One has a dream to accomplish through the income one earns. My major financial goal is to get my house and get rid of the rent paying agenda. The rent money once canceled, the funds can be channeled into a different direction and improve the standards of my life.
The essentials of capital or expenditure control are taking responsibility of each coin and seeing its effectiveness. For a budget to be successful, the main factor to consider should always be the observation of the income one earns, and the worth of the needs to allocate the funds. If the needs are not proportional to the budgeted capital, definitely there is always a problem. The bottom-line of the discussion is taking responsibility for one’s money, hence foster a better future.