The Budget

So you have finally made up your mind of considering investing.  That's what I felt too when I was starting.  But I did everything in a spreadsheet.  I monitored my income and expenses and then prepared the budget for my calendar year.  Set aside a portion of your income for food items, clothing, shelter, health and hygiene, transportation and communication, occasions, and of course, vacation and leisure.  This is my view of managing expenses.  A balance is a must.  Saving without unwinding is boring and prone to healing.  : )

From that budget, try to find areas where you could cut costs, normally on clothing, transportation and communication and occasions.  It is actually so easy but the attitude to change spending habits is difficult.  You just have to identify which ones are expenses on the luxury side rather than necessity.  Be true to yourself.  It is your budget and money anyway.  It is your life that eventually will harvest the fruits or reap the pains.

Surely, you would arrive at a projected income and never a loss on a monthly basis.  So, where will you put that excess moolah?  If you let it sleep in your ATM, more often it will be withdrawn and spent on useless stuffs or your money will be eaten by inflation.  This is the time you think of investing.  The key here is consistency.  You must apply your financial strategy throughout the days and stick to your budget.  Next post, products to get you started investing.

Let me know your thoughts or if you need help preparing a budget, don't hesitate to interact whether through comments or contact me page.

Onward to Financial Freedom!