Big Money Spender! I know we all love that name, when it’s time to ball, we want to ball with our full chest. Aunty with the big vibe, bigsis the cash lord, one item for everybody including passerby. That was how tomiwa got broke shortly after being paid her salary because she wanted to live up to being a “Big Money Spender”!
Budgeting your finances can not be overemphasized.
Here are 6 reasons why you should stop being a “Big Money Spender and Draft a budget
It Helps You Keep Your Eye on the Prize
A budget helps you figure out your long-term goals and work toward them. If you just drift aimlessly through life, tossing your money at every pretty, shiny object that happens to catch your eye, how will you ever save up enough money to buy a car, a house, open a business, or anything you wish to venture into in the future.
It Helps You Prepare for Emergencies
Life is full of emergencies so one needs to be well-equipped financially. Your budget should include an emergency fund that consists of at least three to six months worth of living expenses. This extra money will ensure that you don’t spiral into the depths of debt after a sudden life crisis. And yes it may take time to save up to three to six months’ worth of living expenses but start small and be consistent.
It Helps Ensure You Don’t Spend Money You Don’t Have
I don’t know if it’s a Nigerian thing or societal pressure but we always spend more than we have in our accounts and go into debt, if you create and stick to a budget, you’ll never find yourself in this precarious position. You’ll know exactly how much money you earn, how much you can afford to spend each month, and how much you need to save monthly.
It Helps Address Bad Spending Habits
Building a budget forces you to take control of your spending habits. This may help you to notice certain items or areas you are spending without a budget. Often ask yourself what you’re purchasing if it’s necessary, this would help you determine its cost/benefit to you. This will assist you to rethink the way you spend money and re-focus your financial goals and objectives moving forward.
Lastly, It helps you gain control of your finances
Think of budgeting as a financial roadmap to your destination. It will guide you to your goals. It will also reduce arguments and improve relationships because you and your family will know where you are going financially, providing a smoother ride along the way. Especially catering for your kids.
EM readers, it’s time to start budgeting our finances.
Written by Uchechukwu for EM