by: Elmer Francisco

Unfortunately, most people does not even know what budget really means. Some people say that you're on a budget when you are being thrifty. Some people say that budget is a way to deprive yourself of the good things in life. Some people say that budget is simply bad.

What do you think budget really is?

Budget is simply an estimate of your income and expenses over a fixed period of time. It is neither good nor bad.  It is what it is, we are the ones labelling it. Just like everything else, we can either use budget against us or to our advantage. As for me, I would always prefer to leverage from everything, even from seemingly hopeless cases. So, what's it gonna be?

Budget to your advantage!

Budgeting is simply knowing where you stand financially. It's all about knowing your buying power. Would you be able to afford your lifestyle or not? Would you have enough income to be able to save or invest for your future?

How to prepare your budget?

List down all of your income streams and the actual amounts that you receive over a period of time, say monthly be it from Salary, Business Income, Commissions, Allowances, Investments, etc.  Then list down your expenses. It would be best if you could use historical figures to have more precise estimates be it Rent, House Mortgage, Car Amortization, Utilities, Credit Card Bills, Dining Out, Shopping, Travel, etc.

With these information, you would know exactly where you need to make some adjustments. You'll be surprised that you are spending a lot for unnecessary expenses. I am not saying that you must deprive yourself of the great things in life. All I'm saying is that there is such thing as COST and WORTH.

For instance, if I were to buy a pair of shoes, I would always prefer to buy a more costly Louis Vuitton that would make me happy, feel good, give me real comfort and would last a lifetime than a cheap unbranded pair of shoes that would make me miserable, feel sorry for myself, give my feet blisters and would last for only 6 months.

On the contrary, I would prefer a cheaper MacBook Air than a much more costly MacBook Pro because I would not need the superb computing power of the MacBook Pro for my daily transactions. Maybe if I were a photographer, a videographer, a musician or a scientist, I would prefer the more expensive one with much more computing power.

For a phone, I prefer an iPhone than the cheapest Samsung cellphone because I need the apps for my ForEx Trading, CFD Trading, Stock Trading, Mobile Banking, Social Media, FaceTime, Viber, take pictures and videos, Google Drive and many more. But if my purpose is just to call and send text messages, I would buy the cheapest one.

It would really depend on what you need. But, don't buy just for the heck of it.


Remember, whatever it is, keep it within 70% of your total income and you’ll be fine.


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