THE IMPLICATION OF A PERSONAL BUDGET ON WEALTH CREATION.

 The government has a budget, what about an individual? We live in a society that wants to become wealthy. However there are some virtues that we take for granted. These include planning for our personal funds. Financial literacy gurus have noted that personal financial management precedes successful wealth creation. However I have met youths who say that they will plan for their money when they get a formal job. This means that they undermine little coins. 

The small coins when added up constitute the desired amount. However one can never accumulate money when they despise the small coins. A budget enables one to forecast their income and expenditure for a certain period. Come to think of it if a country such as the United States of America has a budget that means that we should pick a leaf and develop budget for our own lives. Some parents have made it worse for children by buying them every thing that they want. Such children can not appreciate that money is a scarce resource. A budget enables a person to make decisions based on evidence rather than feelings. Some of the financial challenges that we face are a result of lack of commitment to developing a budget. A budget enables one to set a clear goal which he or she can work hard to achieve.

HOW TO BUDGET YOUR MONEY

1.Have a clear savings goal

2.Determine the cost of the goal

3.Track income and expenses

4.Live with in your means

5.Avoid self comparisons

6.Save as soon as you earn 

7.Develop financial knowledge

8. Start small

9.Join a financial master mind

10. Open an emergency fund.

Money is a scarce resource yet it is a major component of life. Without money life becomes tough. We must embrace the discipline of developing of budgets so that we can track funds.

Phillip Kiryowa 

Finance and Leadership Coach 

+256752615916

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