Many people especially web-writers (bloggers, freelancers and co) don’t really know how to make and keep a household budget. When you get that pay at the end of month do you find yourself short of cash before the month ends? If yes you really don’t know how to plan and organize your money. This introduces us to
Household Budgeting
A household budget is the plan for future expenditure of a given household. It represents the first step in money management. An individual’s budget is a useful device that can help a him or her achieve what he/she needs now and in the future.
Advantages of Keeping a Budget
i. It helps avoid use of limited money fo items which are not immediately important to you and the family.
ii.. It enables the individual to take an overview of the use of his income.
iii. It enables easier decisions as to what is to be included or omitted.
iv. It helps to prevent impulsive buying, so that the expenditure of your income is based on thoughtful considerations.
v. A budget determines the use of other resources and
vi. Budgeting can also provide a way for training children in the use of money (if you are married and with children if you are not ignore it.).
Steps in making a Budget
Budgeting involves the following five steps:
1. List all commodities and services needed by you or your family members throughout the proposed budget period such as food, paying for webhosting, gadgets requirement etc.
2. Make an estimate of the cost of the needs.
3. Estimate the total expected income for the planned period.
4. Bring expected income and expenditure into balance.
5. Check the budget to ensure that it is likely to succced.
Although this steps seem easy, but it’s not that really easy as a lot of effort is required on your part to stick to this “money plan.” if you still think that it’s easy ask youself why you are not trying it. Besides keeping a budget will help us in the long run as there is always a rainy day, when that day comes your extra saved money will help you.