Do you budget your personal expenses monthly?
By ketping8889
@ketping8889 (302)
Saudi Arabia
October 8, 2010 10:13am CST
Spending money is fun. It is nice to be able to buy what we want without worrying about the price. Sometimes, we may end up buying what we do not really need.The worst scenerio is when our money disappears so quickly and we wonder where it had all gone. This is one of the reasons why establishing a budget is so important. By planning our expenses we can achieve a certain level of savings and to cope with unexpected needs for funds.
By budgeting, we can also cope with the increasing rise in prices of daily commodities and unforseen financial hardship. So we need to review our budget every month to ensure that we are sticking to the our budget and prioritize our expenses.
In this way we can prevent overspending and increase our savings.
Do you practise self control and budget your personal expenses monthly?
1 person likes this
2 responses
@cheongyc (5072)
• Malaysia
8 Oct 10
Yes, we certainly need financial planning and budget control. Even if we do that, we can still find that we are wasting some of our moneys. Imagine how much more money will be wasted if we didn't plan our spending and saving properly. We need even better planning if our income is limited and hard-earned.
It's the basic step to good financial management. A step beyond budget control and saving, is to learn and invest the money that we saved. Without decent investment, the money will dwindle in value over time due to inflation.
@ketping8889 (302)
• Saudi Arabia
8 Oct 10
Thank you, cheongyc. You seems to be good in financial management.It is indeed wise to plan our expenditure and savings properly but it is not that easy as it needs disciplin and self control.
It is also true that financial planning is even more essential if our income is limited or hard earned. Of course, it would be great to be able to invest our money intelligently. Can you suggest some of those decent investments which you are referring to?
Thanks again for your response.
1 person likes this
@cheongyc (5072)
• Malaysia
9 Oct 10
You are most welcome, ketping8889. Indeed I am still learning and I am glad that I am making progress in my financial intelligence day by day. Although a person's wealth might not correlates with his financial intelligence in short term, but it will be reflected in his portfolio long term.
Actually there are tons of instruments which we can choose to invest our money in. Just like there are lots of choices for a warriors to master. Any weapon, after adequately practiced with, can make him a skillful fighter. Therefore, if we are familiar with an investment instruments, it could make us money. Otherwise, it couldn't make us much money, or worse still, it cause us to lose money.
The instruments that I am interested in now is equities/stocks, mutual funds and currency exchanges.
Happy posting and have a nice day!
@ketping8889 (302)
• Saudi Arabia
13 Oct 10
It is good of you to share knowledge and manage your financial status wisely.There are indeed variety of ways and means to invest our money. When investments are concern, there risks. The higher the risks, the higher the gains or lost.
I do give extra credit to people who cares to learn and improve themselves. Their life will be more interesting and meaningful as they open themselves to the world, knowledge, opportunities and contributes effectively to society.
Equities/stocks, mutual funds and currency exchange are indeed very interesting and hope you will do well in all of them. Another rather wise to invest in property. Do you agree?
1 person likes this
@puccagirl (7294)
• Israel
8 Oct 10
Yes, I have a budget and I also write down what I spend money on. I started tracking my expenses rather recently, but I have been budgeting for a long time. I feel it really helps me keep my finances under control. So I can really recommend it!
@ketping8889 (302)
• Saudi Arabia
14 Oct 10
Hi Puccagirl, thank you for your recommendation. Most people who budget their expenditure mentally but seldom put on paper. I agree that documentation of our expenses will enable us to track and monitor our budget effectively.
I am glad to hear that you are keeping your fiances under control by doing so.
Thanks again for being helpful.
