[vc_row][vc_column][stm_spacer height=”150″ height_mobile=”-100″][vc_custom_heading source=”post_title” font_container=”tag:h4|text_align:center|color:%233f3f3f” google_fonts=”font_family:Montserrat%3Aregular%2C700|font_style:700%20bold%20regular%3A700%3Anormal”][/vc_column][/vc_row][vc_row][vc_column width=”1/6″][/vc_column][vc_column width=”2/3″][vc_single_image image=”13827″ img_size=”large” alignment=”center”][stm_separator color=”custom” style=”style_3″ custom_color=”#0d97ff” sep_width=”200px” sep_height=”10px” sep_css=”.vc_custom_1571309810608{margin-top: 20px !important;}”][vc_raw_html]JTVCRElTUExBWV9VTFRJTUFURV9TT0NJQUxfSUNPTlMlNUQ=[/vc_raw_html][vc_column_text]Life doesn’t exactly come with a manual on how to be successful.
The good news is: It comes with tools!
Budgeting is one of them.
We may each have our own definition of what “success” looks like but having our finances in order most probably plays a huge part in what it means to us.
So what exactly is budgeting and what role does it play in reaching your goals?
Let’s go back to the basics, shall we.
Investopedia defines “budget” as a “financial plan for a defined period, normally a year that is known to greatly enhance the success of any financial undertaking.”
That’s quite a mouthful. Let’s break it down some more:
- Develop the habit.
Sticking to a budget is a frame of mind. It’s having a sense of self-accountability and self-responsibility for your finances.
It’s becoming a much better version of yourself so you wouldn’t have to worry about retirement and you’ll have money for things you can enjoy like a new car, a new house, or vacations with the family.
In short, it’s all about prioritization. It’s sorting out what’s more important and differentiating your “wants” from your “needs”.
Don’t be overwhelmed. You can always start small and build from there.
Something as simple as jotting down how much you’ve spent can get the ball rolling. Being conscious about the money you’ve spent and what you’ve spent it on will make you conscious about how much you have left. Soon, you’ll be spending less than what you’ve earned because of self-discipline.
It’s developing that budgeting “muscle” and making sure it grows and becomes more defined over time.
- Have a system in place.
Setting yourself up for success means following a system. There are several ways you can go about tracking your expenses.
If you prefer the more traditional, physical, and classic approach, you can try the envelope budgeting method.
If you’re more tech-savvy, apps such as PocketGuard, Mint, etc. are readily available and can literally be at the tip of your fingers.
Regardless of the method you choose, it’s important to note what Guru and Registered Financial Planner Fitz Villafuerte said:
“(Your) Budget will change with you. It’s not something you design for good. It’s dynamic.”
In other words, depending on what you prioritize and as you progress in your budgeting “game”, you will figure things out. They will fall into place as long as you learn from your experiences.
- Have fun!
Budgeting is a life-long journey. You probably won’t get it right the first time around but that doesn’t mean that it’s not for you.
There is no “one size fits all” method.
Stick to what works and change things up from time to time until you figure out the formula that best suits you. It’s your money and finances anyway!
Fitz Villafuerte highlights the importance of having fun with your budget-related activities.
If it feels like a burden and too much of a chore, it’ll stress you out more than it helps. So don’t be hard on yourself.
Now that you have a working knowledge with regard to how you can start your budgeting journey, we hope these can help your financial goals this year and beyond.
See you next week for more discussions and tips about financial wellness![/vc_column_text][vc_raw_html]JTVCRElTUExBWV9VTFRJTUFURV9TT0NJQUxfSUNPTlMlNUQ=[/vc_raw_html][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][vc_row disable_element=”yes” shadow_x_offset=”0″ shadow_y_offset=”0″ shadow_blur=”0″ shadow_spread=”0″][vc_column][/vc_column][/vc_row][vc_row][vc_column][vc_column_text][/vc_column_text][/vc_column][/vc_row]