Do you budget for your expenses? Do you plan ahead with your money or do you make decisions in the moment? I realized how important budgeting was when I found out that more than 50% of lottery winners go bankrupt after a few years. Making money is great, but it is important we know how to managed it!
It is important to understand and practice important principles of Financial Planning. This means making deliberate choices with your money which will allow you to properly manage your finances throughout your lifetime. Here are some of the financial decisions that you should make:
Justify your spending and use a budget to plan for your expenses
Open a rainy day account with 3 to 6 month’s expenses
Use only what you need and avoid spending on items that are not a priority
Reserve some of your income by saving at least 10% of your salary each month
Nominate funds for the future by making wise investment decisions to help you increase your wealth decisions
Evaluate your insurance needs
Yield not to temptation.
What tools can we use to do this?
One such tool that can help is a budget. With a budget you will be able to:
* track your expenses and income ✔
* see how to spend money ✔
* plan and save for your financial goals ✔
At your own leisure, please feel free to view the following links for access to electronic budgeting tools that the Victoria Mutual Groups offers
* budgeting calculator - http://vmbuildingsociety.vmbs.com/calculators_budget.php
* electronic budget planner - https://victoriamutualresources.com/wp-content/uploads/2015/08/VM-Personal-Budget_Final.xlsx
Through budgeting, we aim to map out all our expenses with the projected or actual costs and our streams of income. As you set realistic expectations and guidelines about how much you plan to spend on each of your expenses, stick to it! If you have funds left over you can allocate it to save or invest towards the goals that will help you secure a more financially stable future.
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