Thursday, 22 September 2016

HOW TO CUT YOUR SPENDING COSTS (making a budget)

The only way to have a budget that works in your favor is to start with your own finances. The big picture only makes sense if you have a piece of your own puzzle to fit into it.

I got the best definition of a budget the other day. That it is really a spending plan. We earn money so that we can enjoy it, sampling the pleasures of what it can bring.

A sound budget is one that allows us that opportunity rather than leaves us with the sense that we have sacrificed every morsel of fun we would otherwise obtain from life.

Budgets help us keep track of our finances. It ought to provide clarity rather than obscurity where our financial situation stands. You should always be able to tell at a glance, where your assets and financial strengths lie, where your liabilities are and have a work plan in place to take care of it.

The budget may take care of small details it does not mean you do not have your own personal vision and bigger picture. That allows you to be flexible.

When I go retrenched and met with a finance expert, he gave me a compiled work book with blank spaces that I was to fill in. There was a room for adjustments but it could only happen once I knew what my current financial situation was. It required an appraisal of where I was to know where I would be doing and to figure out a way to get there.

Budgeting takes time and it ought to be of those things you do in a hurry, pace yourself. What you have in a state of flux, so be accommodating with yourself and your income. Interestingly on subscription to gyms, thus you end up buying more and spending more money in total.
Enough the people with the tightest purse strings happen to be richest.

Warren Buffet is legendary for living in the same house and visiting the exact same barber he had before he became a trillionaire…..

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