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10:57
Executive Republic
Do you ever feel like you have lost control of your finances and all you do is spend, spend, spend? N1,000 here, N5,000 there, N25,000, N100,000 and so on with no respite. Do you constantly have to borrow money from your parents, siblings, or friends? In a way you cannot really stop spending; there are so many payments that have to be made; your rent or mortgage, school fees, groceries, petrol, diesel, the list is endless. Whilst you can’t really avoid the essential expenses, the real problem is the money that just gets frittered away without you really knowing what it went on.
How can you get your spending under control? There is no foolproof method of getting your finances under control but here are a few tips that might help:
Keep track
Write down everything you buy for at least a month: N7,000 for some groceries, N3,000 for petrol for your car, even N200 for your daily newspaper, write it all down. You may not realize that you are spending over half of your income eating out each month. Many of us spend money casually without really thinking about it; after you have used a spending diary for a while and tracked your expenses for say a month you will have a clearer picture of where you can cut back. A spending plan gives you the power to decide how you will spend your money. You will be less likely to overspend when your expenses are planned for.
Create a budget
The budgeting message may seem like it is over flogged but it really is one of the most vital steps you can take to curb over-spending. Having a simple budget is one of the tried and tested ways to keep your finances in check.
Set aside the money you require for your fixed, necessary expenses; groceries utility bills, loans and so on. Then estimate how much you spend outside the essentials say on clothes, and entertainment. It is usually these variable expenses that make you overspend. Withdraw that money at the beginning of the week, and plan to make it last through the week. Determine what to allot to each category and stick to the set spending limits.
By fixing a spending limit and sticking to it you will be much more in control of your spending. The key to the success of this saving method is that once you have spent what you have allocated to each expense category, you must make a conscious effort to just stop. As difficult as it might sound, once the budgeted amount is gone, that’s it. No more withdrawals.
After the first few months you will be able to make adjustments that make your spending pattern more realistic. Remember to involve members of your household. You need their buy in for the initiative to be successful.
Pay with cash
If you feel your debit or credit cards are leading you to spend more than you plan to, then put them away for a while and pay with cash. If you are used to making payments with your cards, using cash may seem ridiculous but it is still the best way to rein in your spending should it get out of control. When you use cards to make payments, you feel less of an impact of how much you are spending because it doesn't feel like you are actually parting with your money.
With a credit card you aren’t spending your own money so the ability to delay payment encourages you to spend more than if it was your money you were parting with right now. It is so easy to slip your ATM card into the machine without feeling the impact.
Save
It might seem absurd to suggest that you save when your finances are out of control but this is exactly what you should do to ensure that you are not tempted to spend what could be going towards saving and investing. Put aside some money at the very beginning of the month, when you receive your salary for savings. Automate the process so that your current account is debited at source and the funds are moved directly into a savings account.
Once you have reached an initial goal of having an emergency fund of say six months of expenses safely set aside, you can begin to save for other goals. A direct debit from your current account to an equity fund is a painless and effective way to invest towards your long-term goals.
We all love to shop. It seems to be woven into the very fabric of our society. There is nothing wrong with a little shopping from time to time but when your spending gets out of control it can destroy finances, relationships, even lives. Financial hardship and debt doesn’t just happen overnight. It takes time to run up unpaid bills, to default on loan repayments, to constantly buy things that you don’t need. If you are focused and disciplined about getting your finances in order you will soon be back in charge of your financial future and can enjoy the sense of satisfaction, fulfillment and satisfaction that this brings.
source:moneymatterswithnimi.com
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Over spending is as a result of too much money at disposal,and this can be controlled to my own understanding by planning i.e wrting the neccsary and compoursly expenses e.g feeding,rent,school fees etc,budgeting i.e knowing the total amount of money that should be spent within a specified period of time and then save your money when the neccesities have been met and lastly do not spend on anything without knowing it benefit or benefits.BY; OZOAKA ESTHER UKA-AMAKAA
ReplyDeleteFlambouyancy is as a result of pride that leads to debt atimes. save your life from debt and manage your little resources effectively at least for the sake of rest of mind.
ReplyDeleteBy fixing a spending limit and sticking to it you will be much more in control of your spending. The key to the success of this saving method is that once you have spent what you have allocated to each expense category, you must make a conscious effort to just stop. As difficult as it might sound, once the budgeted amount is gone
ReplyDeleteADEKUNLE AYOBAMI REBECCA: We must be prudent when spending money in other for us not to run bankrupt. We must be able to save, and give account on how we spend the money.
ReplyDeleteIt is always good to budget for the simple fact when you budget, you know what you earn every month and what your expenses are every month. If your expenses are more than your income, then one would need to cut down on expenses. Also, it is important to have savings because expenses can go up at any time and you need a buffer.
ReplyDeleteSome people spend their money carelessly, they do not know what to spend their money, money is very difficult to get therefore we should spend ti wisely, thanks and God bless.
ReplyDeleteif you feel your debit or credit cards are leading you to spend more than you plan to, then put them away for a while and pay with cash.
ReplyDeletewe needs to know how to spend our money
ReplyDeleteyou are under estimation of expenses
ReplyDeleteA budget is a plan for your future income and expenditures that you can use as a guideline for spending and saving. Although many Americans already use a budget to plan their spending, the majority of Americans also routinely spend more than they can afford. The key to spending within your means is to know your expenses and to spend less than you make. A good monthly budget can help ensure you pay your bills on time, have funds to cover unexpected emergencies, and reach your financial goals.
ReplyDeleteBy: Atilola Toheeb Bayonle
budgeting is telling us how to spend our money.
ReplyDeleteIf you don't budget your money, your money will budget you.
ReplyDeleteI hope this article is not teaching us to be stingy and selfish.
ReplyDeleteSavings and investment are the two secrets of a life of abundant wealth and prosperity.
ReplyDeleteyou should know how to spend on our budget financially.
ReplyDeleteAvoid unnecessary spending on extravangants luxury but rather buy assets to yield interests for you and stick to your budget plans
ReplyDeletewith creating a balance sheet will make u know if your spending is out of control.
ReplyDeletethe feel your debit or credit cards are leading you to spend more than you plan to, then put them away for a while and pay with cash.
ReplyDeleteAZEEZ SELIMOT MOTUNRAYO
ReplyDeleteWe have to take a budget for our financial future in the sense of satisfaction and fulfillment of our need.
I love this article,its makes me to understand more abt how to control our spending.
ReplyDeleteLive your life according to your income than being a champion in debts
ReplyDeleteif you feel your debit or credit cards are leading you to spend more than you plan to, then put them away for a while and pay with cash.
ReplyDeletePut aside some money at the very beginning of the month, when you receive your salary for savings.
ReplyDeleteIt is your spending out of control. By; Olayiwola Timileyin sodeeq.
ReplyDeleteMethodical control of an organization's operations through establishment of standards and targets regarding income and expenditure, and a continuous monitoring and adjustment of performance against them
ReplyDeleteBy: Ogundipe Oluwafunmike Grace
Review your spendings and make amends where necessary
ReplyDeleteMoney management is life management. Many people are penny wise but pound foolish.
ReplyDelete8. Tracking Your Expenses Each Month
ReplyDeleteThis simple budgeting goal is essential to making your budget work for you. If you do not know where you are spending your money, it is difficult to change your habits. If you are a budgeting pro, you may want to revisit this goal to see if there are any areas you can improve on now. You can do this on a broad basis looking at general categories or take the opportunity to break it down into smaller categories within your broad categories. For example looking at your grocery budget how much do you spend on convenience foods or alcohol or eating out? Can you change that amount for the better
Some people spend their money carelessly, they do not know what to spend their money, money is very difficult to get therefore we should spend ti wisely, thanks and God bless.
ReplyDeletebudgeting is the most essential thing in the lives every human being
ReplyDeleteYou have made use of strict languages which might be difficult to understand
ReplyDeleteBy fixing a spending limit and sticking to it you will be much more in control of your spending.
ReplyDeleteMore than half of the Nigerian populace have not developed a saving habit talk less of investing their hard earned money, Majority are traders, civil servants and petty entrepreneurs who spend more than they earn.
ReplyDeleteWe can be out of debt and be in charge of our spending by fixing a spending limit and sticking to it no matter what.
ReplyDeleteSave the money, lose it; invest it, keep it.
ReplyDeletecreating your budget plan will help most, and knowing the motive of of you having the money
ReplyDeleteWhat is budgeting? Basically, it's making sure that you're spending less than you're bringing in and planning for both the short- and long-term.
ReplyDeleteUnfortunately, many people think of budgeting as depriving themselves and they avoid it like they do a diet. However, just like a diet is really just a program for eating, budgeting is just a program for spending. If you are hitting a mental roadblock when you hear the word "budget", just call it by a different name, such as "personal financial planning." That's what budgeting is, after all. It's a proactive approach, rather than a reactive approach, to managing your money.
Budgeting is an important component of financial success. It's not difficult to implement, and it's not just for people with limited funds. Budgeting makes it easier for people with incomes and expenses of all sizes to make conscious decisions about how they'd prefer to allocate their money. It can also help people save for retirement, emergencies, a new car or just about anything. For many people, having a solid budget in place, knowing how much money they have and knowing exactly where that money is going makes it easier for them to sleep at night. (For more on saving for retirement. . By Kolawole Bashiru
Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:
ReplyDeleteTo control resources
To communicate plans to various responsibility center managers.
To motivate managers to strive to achieve budget goals.
To evaluate the performance of managers
To provide visibility into the company's performance
For accountability
In summary, the purpose of budgeting is tools:
Tools provide a forecast of revenues and expenditures, that is, construct a model of how a business might perform financially if certain strategies, events and plans are carried out.
Tools enable the actual financial operation of the business to be measured against the forecast.
Lastly, tools establish the cost constraint for a project, program, or operation
FASANYA IBIRONKE
ReplyDeleteBudget serves as a guide for the present and future.
Methodical control of an organization's operations through establishment of standards and targets regarding income and expenditure, and a continuous monitoring and adjustment of performance against them
ReplyDeleteBy: Ogundipe Oluwafunmike Grace
Ogunjimi Wasiu Omolaja
ReplyDeleteyour expenses are more than your income, then one would need to cut down on expenses. Also, it is important to have savings because expenses can go up at any time and you need a buffer.
the writer use a business style for transmitting message to the audience.
Asifa Shukurat
ReplyDeleteIt seems to be woven into the very fabric of our society. There is nothing wrong with a little shopping from time to time but when your spending gets out of control it can destroy finances, relationships, even lives.
Budgeting is very important in man and woman life,because is not easy to get but very easy to spend. in that case spend wisely......
ReplyDeleteExcess spending can be curtailed through the adoption of budgeting in the society we are today.
ReplyDeleteExpository style
Excess spending can be curtailed through the adoption of budgeting in the society we are today.
ReplyDeleteExpository style
QUADRI KABIRU OLALEKAN
ReplyDeleteBudgeting is tools to curtail the excess of spending.
If your expenses is higher than income you received you need to cut down your expenses by doing that , you are making budget.
Create a weekly or monthly budget and avoid purchasing stuffs with credit cards
ReplyDeleteIf you do not know where you are spending your money it is difficult to change your habit
ReplyDeleteMake a list of all expenses in accordance with your income and follow it promptly
ReplyDeleteBudgetting is neccessary in our daily living and avoid buying just anything.buy what you need and not what you want.
ReplyDeleteBudgeting would help miserable spenders if followed as planned
ReplyDeleteBudget help to control spending, it helps to be prudent inorder to avoid spending unnecessarily. Loosing style
ReplyDeleteYou must have budget and know the manner of your spending in order avoid being cash-trap(broke).
ReplyDeleteWrite down everything you buy for at least a month: as a means of determining your annual budget
ReplyDeleteDavid Mary Boladale.... Spending plan will gives you the power to decide how you will spend your money and you will be less likely to overspend when your expenses are planned for.
ReplyDeleteAlimi Zainab Opeyemi.... Having a simple budget is one of the tried and tested ways to keep your finances in check.
ReplyDeleteKeep track,Keep track
ReplyDeleteSpending must be controlled by making budget to avoid over spending. By Raji Balikis Favour
ReplyDelete