Budgeting: A good way to control your spending.

Money, they say, is something everyone needs in abundance but the fact and reality we all face is that even those who seem to have an abundance of it are still searching for more money.

_{Talk about Oliver Twist and his desire for more (whatever it is he always wanted)... according to the good old book.}

Money is scarce by nature. Even when you hear that the institutions in charge of printing and minting in a particular country are doing their thing and increasing more units of a particular currency in circulation, it is still undeniable that the money they print is never enough.

You get it and spend it.

Of course, the idea of printing more money has its ups and downs. We can talk about that later, but not today.

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In today's discussion, let's look at how to make the best use of the little money we have.

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Back when I was studying international finance in my penultimate year in Uni, we usually have this statement that resonates with me;

Money is scarce, but living on a budget can make up for the scarcity of money.

I couldn't agree more with that.

It has already been 5 years since the first time I heard that statement and everything happening both in the macroscopic and microscopic view of the economy proves that working with a budget is one of the sure ways to wisely use the money we have.

What we see on several occasions is a situation where people go on a spending spree and they end up spending too much on things that are not very important. When something like that happens, the major needs will remain pending and when it gets unbearable, someone in need will be tempted to take up debt.

To be sure that your level of indebtedness will be reduced to the bare minimum, it is advisable to work with a budget.

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Do you understand the idea behind having a budget?

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The idea of drawing a budget should never be intimidating. Yeah, I know there are so many fancy things in finance which can be overly complicated, but a budget is not one of those.

Look at the budget as a financial tool which highlights an estimate of your futuristic expenditure while matching it against your earnings. It helps you to make a decision about where to spend money and the amount you can spend while taking note of your earnings.

In effect, this suggests that anything you plan to spend will surely tally with what you earn. At the very least, the idea of having a budget is a good way to make sure that you won't spend more than you earn.

When you get more disciplined in withdrawing a budget and sticking to it, you will also see that this will make it easier to squeeze out some pennies which you can save or invest.

In a real sense, everyone should work with a budget, but not many people are disciplined enough to do that. Nonetheless, you need to realise that chances of having an abundance of money are very low. The more money you make, the more you will realize that there are expenses to be made.

When you think you have enough money at hand, you may lose track of your spending and end up spending recklessly. That happens a lot when you are not working with a budget. This is why it is advisable to draw a budget and work with it.

You will be glad you did.

Thanks For Not Missing Any Full-stop Or Comma
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