THE POWER OF TRACKING EXPENSES

 A certain youth wondered where his money was and after certain days he remembered that he had spent the money. I do not know if you have ever experienced that situation but if occurs to many on a daily basis. The simple discipline of keep track of our expenses can change our financial trajectory. In the financial literacy trainings that I conduct there is a common question, that where should one get the funds to save? Part of increasing our savings is to mind our expenses. When we spend money without a budget we are on our way to financial ruin. How come a country such as the United States of America with all its resources has a budget? How come big organizations such as banks have budgets to guide their spending. We can learn a lesson as individuals from corporate companies. Near lakes there is a saying that they spend their money like fishermen. High spending patterns are likened to fishermen because before banning fishing on lakes they used to earn a lot. But when times change we also need to adapt. With resource constraints it requires wise money management. Some youths say that they have no money to save but majority also do not take time to plan for their finances. Some spend by impulse.

There is also the challenge of peer pressure especially among the youths. Some spend to impress their friends well knowing it was not in their priorities. We need to take a leaf from the Indians who learn about money while they are still young. The parents involve their children in family businesses and this may explain why the likes of Madhvani and Mukwano Group of companies have lasted this long. A number of small enterprises collapse simply because the entrepreneurs do not separate their funds from business resources. Many banks find lending to small businesses risky simply because they do not keep records that can enable them to assess the economic viability.

IMPORTANCE OF A BUDGET 

1.Enables a person to project income and expenditure

2.It regulates spending

3.It is important for decision making

4.Helps one to live with in their means

5.It promotes one to prioritize savings.


Ultimately financial discipline is not only exercised when one has the money. The discipline of budgeting and keeping records are very vital on the road to financial advancement.

Phillip Kiryowa

Personal Finance Coach

Advanced Empowerment Link

+256752615916

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