HOW A PERSONAL BUDGET CAN LEAD TO FINANCIAL ADVANCEMENT

 While training members of a certain Savings Credit and Cooperative Society a certain youth asked me how a budget could  assist in financial advancement. A personal budget is a plan for the coordination of income and expenses. Take an example of a building if it is built on a weak foundation it will collapse. In the same way if our financial lives are built on weak foundations they will not stand the test of time. In a recent article in the media it was shown that some youths had diverted Parish Development Model Funds from the intended use to unplanned expenditures. This was an indicator of lack of adequate planning on the part of the borrowers. A number of young people say that they only plan for funds when they have enough but my assertion is that it is too late. 

A budget enables a person to forecast their income and expenses . A budget can be for a day, week, month or year depending on the circumstances. A budget can be for a person, family or business. A budget should be written down for clarity and aiding in decision making. A budget is a blue print when it comes to responsible money management. If a Super Power like the United States of America has a budget what about a mere individual. With a clear budget a person is able to know whether their income is less than their expenses which is a deficit or whether income is more than expenses which is a surplus which is a deficit. 

I want to bring to your attention that a lack of attention to personal budgeting has caused a lot of pressures on society. We live in a generation that is highly skewed on spending and in this way in most cases if anyone gets any money he or she is likely to spend it. We have seen many cases of university students who have diverted tuition to gambling and drugs. So when a student has a personal budget he or she will spend the funds responsibly.

HOW TO SPEND RESPONSIBLY

1.Have clear financial goals

2.Track expenses

3.Track income

4. Write down a budget

5. Live within your means

6. Read about money

7.Join financial master minds

8.Invest wisely

9.Save as you earn

10Automate savings

A budget is a blue print for financial decision making. If a country such as the United States of America has a budget it is prudent that a a person develops a personal budget.


Phillip Kiryowa

Personal Finance Coach(CPC)

Advanced Empowerment Link

For Financial Freedom

+256752615916

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