The Mama Diary: The Importance of Budgeting

“BUDGETING is not just for people who do not have enough money. It is for everyone who wants to ensure that their money is enough.” – Rosette Mugidde Wamambe

A budget acts like a matchmaker. It introduces this end (your expenses) to that end (your income) and makes those ends meet.

We can set out with reasonable expectations but still make mistakes because, well, we are all human beings, especially for us, Filipinos. Maybe we feel discouraged when we make a budget but overspend anyway like, “naa tay ganahan na butang na pwede sa ato ug maka gamit pud sa uban occasions, paliton gihapon.” Or, you tell yourself you only order one expensive food that costs you half of your budget at dinner with friends but end up buying more instead. That is called a spendthrift a.k.a. “gastador or gastadora.” According to Wikipedia, Spendthrift is extravagant and recklessly wasteful with money, frequently to a point where the spending climbs well beyond their means. I think all of us can relate to this.

A budget is just simply a spending strategy that takes into summary estimated current and future income and expenses for future periods. It keeps your spending in check and makes sure your savings are on track for the future sets long-term financial goals, keeps you from overspending, and helps shut down risky spending habits.

If you want to think of long-term goals and work for them, it might lead to certain goals you want to achieve, like getting a house, a new car, saving up for your family’s future, or even getting back to school and getting your master’s degree.

A budget forces you to map out your goals, save your money, keep track of your progress, and make your dreams a reality.

Here are the benefits of budgeting:

1.) Budgeting can help you in some emergencies.

Unforeseen expenses can catch you off guard. An emergency fund doesn’t have to be a significant drain on your resources. It takes a little time to get it flush enough to last you for those six months when you need it, but with the help of a budget, it will get you there by helping you commit a certain amount to your emergency fund every week, even if that amount is minimal.

2.) Retirement plans

“Start living the fine life.” – Snoop Dogg

You can build the precise savings you’ll need into the budget you’re creating right now. If you stick with it, those retirement funds will be there for you when the time comes.

3.) Budgeting can help you fix bad spending habits.

I’m sure maka. relate ta ani tanan in related sa spending habits, honestly, it doesn’t help your financial well-being. The first step in breaking any bad habit is understanding the problem. Fixing your bad spending habits might seem hard. You’ll likely have to make some difficult choices. But your budget doesn’t have to be uncompromising.

4.) It gives you financial control

Budgeting puts you in charge of what you can afford and when you can afford it.
Knowing how much you’re spending and prioritizing what you’re spending it on, compared to the amount of money available to you, eventually will lead to financial independence.

5.) It also can improve your family life.

Studies have shown that one of the main sources of clinical anxiety is debt. It’s easy to see that reducing financial stress can mean a happier home life for everyone in the family. When your budget makes your debt go away, the arguments about money go away, too.

Budgeting can help improve your domestic tranquility in a couple of important ways.

And lastly. . .

6.) It can reduce financial stress and improve mental health

Angst about finances can also be related to physical problems, too. It can affect your blood pressure and your heart rate. It can impair your memory and cause weight gain. Reducing your financial stress can be a key benefit of a budget that brings you back from the depths of debt.

These are tips for making your budget work for you. First, Know the difference between luxuries and necessities. Second, Be aware that the little stuff can add up fast. Third, Restrain yourself, and lastly, Use cash rather than credit cards whenever you can.

The most important part of your budget is that it sets the big-picture plans for how you plan to live your life.