Budgeting…
By: Jennifer Joseph
Tags: Money Mindset, Hustle, Budget, Budgeting, Income

..especially this season…

Everybody likes to spend money, plus, in December, nobody can even escape it; from the general mood of the season to the hike that comes with it. Personally, I’ve been to Brooklyn twice since the 1st. Tearrrsssss. The only thing that tastes better than spending money would have to be spending YOUR OWN money. Ignore what I just said, lmfao. Some of us spend as e dey hot while the rest of us think, rethink and even overthink our choices and options before we eventually decide. If you belong in the first group, then you have no business budgeting! That last statement is euphemism for “you have too much money, ore mi olowo”, because budgeting is the process of making a budget; and a budget is a plannnnn of how your money will be spent. A plan.

how much remain?

Side bar, all this budgeting talk reminds me of the national assembly 😒.

If your finances are not surplus, you might want to consider budgeting (not like rich people don’t budget o 🤷‍♂️) because you most likely don’t have enough money to do or get everything you’d like. Hence, budgeting is important to focus your money and prioritize your spending so that you knock off the things that are most important to you, first. It’s crucial to hone and cultivate this habit of budgeting because especially for persons in countries with dwindling economies, the goal should be staying out of debt and having money for the things that you need, like healthcare and food to survive January and February 😩. In addition, a budget can help you out of it if you are already in debt.

So, first things first: what duration should one plan cover? One week? One month? Six months? Consider how much you make, what your expenses look like and separate needs from wants. There’s really no rule, you’d have to test and see. You could draw up a plan for a month, get a feel of what works and what doesn’t, then make adjustments as necessary. In no time, you’d become an expert, forecasting which months will require a tighter grip and in which months you’d most likely have loose change. Practice, and in the long run, you’d have gone pro in making realistic decisions regarding investments, vacations, emergency spending, et cetera, just like your mum 🤭.

Basics of Budgeting.

Identify your needs and wants. I.D your triggers (what’s that thing that gingers you to want to overspend? Or who?🤣) How much is coming in and how much is going out each month? Subtract expenses from income so you know what you have to work with per month. For clarity, you could make a little table of two columns; income in one column, expenses in the other. Find the sum for each column and then subtract. Fixed expenses are those that stay the same from month to month, e.g. rent. Flexible expenses are those that change from month to month, e.g. the amount you spend on utilities. Total expenses are the sum of both fixed and flexible expenses. Total monthly income is the amount (money and dividends) that you pull in from your many hustles and investments, benefits, e.t.c. Disposable income is the amount you have left after you’ve subtracted income tax and expenses from your income. Track your money. If your left-over cash is consistently reducing, then you need to check the expenses column. It might just be that your hobby is pricey or you are allocating too much money to miscellaneous. Find out and slash! Reward yourself and celebrate small wins. To prevent yourself from being overwhelmed by the painnsss and pressure of this task, you’ll need to find ways to motivate yourself. If you hit a milestone successfully- say three months- spoil yourself. Go on a date, take yourself out and buy something nice (still plan for it so it stays within the budget). Know yourself. You’ve gotta be aware of all your bad habits. Avoid people and places that tempt you (dear foodies, avoid restaurants; dear shopaholics, avoid the mall and that pretty little thing site). Maybe try moving the bulk of your funds to a separate account, one that might not be easy to access. Don’t worry, many Nigerian banks will help you out here 😅 You could create an emergency fund too. Hide away a particularly large chunk of money once in a while, so that if you have to make a big expense such as an abrupt home repair, you’ll still stay within your budget (since you’ll be taking money from this emergency fund).

The Takeaway

Think of it as beneficial, not as a drag

Create a budget that works and stick to it…shebi you’re now an adult?

Rinse and repeat; revisit and rework. This is not a one-time exercise.

Don’t give up no matter how many times you fail.

Ever made a budget? Did you have a budget for this month? How is it going? 😬

Of course, the audio version of this post is here, if you’d like to carry me around in your ears as your day progresses 🥰

Merry Christmas in advance 🧑🏻‍🎄!!

XO!!