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You Need a Budget!

It’s your first step to Financial Fitness

We have all heard about the importance of budgeting and how critical it is to create a plan to spend our money before we do it. But while most people know that budgeting should be the foundation of all financial decisions, there are still those who struggle to apply the concept of budgeting.

Some people don’t know where to start, while others are averse to budgeting because of past experiences. Whatever the reasons, remember that if you’re looking for a healthy financial future, it needs to be based on a strong budgeting foundation. If you are someone without a budget, you need to figure out why, and know that budgeting help, is available. It doesn’t have to be complicated or time-consuming, or involve fancy tools. A simple basic budget is all you need, but there are a few important secrets to a successful budget, to building up the habit and staying on track, so that you don’t give up, and are eventually locked in to a solid and successful budget.

Optimate Financial Solutions offers a range of easy budgeting solutions, to help you plan for the future, achieve your personal goals and get prepared for the unexpected emergencies that are inevitably going to happen. This includes advice like:

Choose Realistic Goals, to help you make good spending decisions, because unrealistic expectations lead to disappointment and budget failure. Still set ambitious goals that can be realised, but also choose smaller, more easily achievable goals that will keep you motivated and sticking to your budget for a very long time. 

Identify Income and Expenses so that you know where the money you earn goes. Using a simple budget worksheet, or a budget app, keep a record of all your expenditure to figure out what you are spending your money on, and compare it to the income you earn. You’ll be amazed at what you discover about your spending habits.

Write it Down or type it on a computer, so you can go back to it when you need to. A tangible budget holds you accountable and helps prevent overspending.

Distinguish Needs from Wants by breaking your expenses down into three categories of Essential, Important and Desirable, so that you can easily identify how much of your money you use for things you really don’t need. Watch our budgeting video, to learn more about how to categorise your spending.

Design A Budget by listing your expenses and then start cutting them out from the bottom up. If your expenses are higher than your income, you’ll need to make adjustments by sacrificing some of the things that contribute to your sense of wellbeing now, for a greater sense of wellbeing in the future.

Start an Emergency Fund to cover unanticipated costs like home repair bills or the loss of a job, or to pay for unforeseen medical expenses. Life is unpredictable and you need cash to get through emergencies without creating more debt, otherwise your budget will not work.

Stick to your Budget once you have created it. Easier said than done, right? Not necessarily…because while keeping to a budget isn’t easy, there are so many valuable tips and tools you can use to help you learn how to make your budget work, and keep yourself accountable.

A good budget is great for so many reasons. It will help you live within your means, avoid unnecessary spending, get rid of debt and give you the freedom to make choices with the funds you have. Most importantly, budgeting is the first step in helping you manage your expenses and reaching your career, life and financial goals, while building wealth for you and your family. Take that first step. You’ll never look back.

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