Budgeting is an important element of living a financially healthy life. It enables you to build a spending plan for your money, ensuring that you always have enough for the things you need and the things that matter most to you.
Unfortunately, “budget” and “budgeting” have often been associated with negative connotations. Some people say that budgeting will keep them from doing what they want and that they are being so restricted. However, budgeting is not as dreadful as others may perceive it to be. Budgeting does not have to be restrictive to be effective. In budgeting, you do not need to cancel eating out with your family or friends just so you could save. All you need to do is discipline yourself, especially when it comes to your daily expenses.
Why is Budgeting Important?
Budgeting is essential as it allows you to keep track of your spending, regulate your expenditure, and above all, save more money. Budgeting can also assist you in making better financial decisions, preparing for emergencies, getting out of debt, and staying on track with your long-term financial goals.
Read: Condo Tips: Beyond the Basics of Personal Financial Management
Budgeting can help you drive savings. These savings can be used to: buy material things you find necessary and important; establish a business to drive more money; invest in a condo in the Philippines to achieve your ultimate dream of having a condo living lifestyle and secure financial independence for you and your family’s future.
Having savings provides you financial aid for life’s uncertainties and it gives you a feeling of security and peace of mind. However, having savings does not happen overnight. It does not take place immediately. It requires a lot of patience, hard work, and of course, budgeting.
In order for this to happen, start with knowing how to budget your daily expenses. Worry not, because this article will give you the ultimate guide in budgeting your daily expenses.
How to Budget Your Daily Expenses
Making a budget plan
Creating a budget plan is your first step in saving money. A budget plan allows you to keep track of expenses and eliminate any gaps that could lead to overspending. A budget plan is not universal. It does not mean that the type of budgeting your close friend is doing might work for you as well. Choosing the right budget system for you is essential for your daily expenses and most importantly, for your financial goals.
Record your expenses
In budgeting your daily expenses, it is important to record every expenditure you have shelled out. This is because recording or tracking down your expenses lets you identify your wasteful spending habits and eliminate them for the growth of your financial life. Additionally, doing this act consistently will help you maintain control of your finances, and encourage you to have better financial habits such as investing and saving.
The best time to record your expenses is just after you spend the money. If you can or whenever possible, take a minute or two in tracking down your spendings while you are out and about. For instance, while waiting for the bus to arrive, use the time to jot down the amount of the fare or you can just simply take a picture of the bus ticket.
Create a spreadsheet
There are hundreds, or even thousands, of tools for making a budget, tracking bank accounts, and creating saving goals, but before you invest yourself in an elaborate money management tool, it might be best for you to simply make a budget with the help of Excel Spreadsheet or Google Sheets.
A person's finances benefit from using a spreadsheet in the same way that a business does since it consolidates all of the data into one easy-to-read location. This allows you to see how much money you have and how it is spent, allowing you to manage your money effectively for your needs. Doing this daily will make you be aware of your spending habits and will make you visualize where your money is going from day to day.
Another good thing about creating a spreadsheet aside from the fact that it is free, there are a lot of budgeting templates online that you can choose depending on your preference.
Alter your lifestyle
Altering your lifestyle does not mean that you have to drastically change the way you live to a full 360. It does not mean that you have to let go of your condo in Manila or your condo living fantasy. Always remember that small changes can make big differences. In order to do this, assess yourself and start with your daily expenses.
First things first: always use cash in your daily expenses! Many people believe that paying with cash allows them to better regulate their spending. Go to the bank and pull out the cash amount you have set in mind for the week. If the cash is about to run out, it is a sign for you to stop spending.
If you are comfortable with dining in restaurants or spending too much on takeout and delivery of food orders every day, you might want to consider changing this a little. Preparing your own food can help you save a lot of money! Instead of going to a drive-thru for breakfast, try bringing your own sandwich for breakfast while you are on your way to work.
Looking for an alternative entertainment and leisure activity will help you manage your finances. Having fun does not mean that you have to spend tons of money. There are a lot of leisure activities that you and your family or friends can enjoy without having to break the bank. For example, if you enjoy watching movies at the cinemas, one possible substitute for this is watching Netflix. Not only will the whole squad enjoy watching, but you also get to spend less.
Aside from hiring an interior designer for your ready for an occupancy condo unit, try decorating your condo on your own! You will save a lot of money plus you can be as creative as you’d like, no limits!
Set some financial goals for yourself, and utilize your budget to help you achieve them. Whether it’s paying off your debts or loans, buying your dream condo or home, or maybe saving up for your retirement, creating the right budget with the right set of goals will help you achieve those.
As you are establishing your goals, consider thinking about both long-term and short-term financial goals. Your daily expenses will fall on your short-term goals, while your emergency funds and investments will be on your long-term goals. You can strive toward both long-term and short-term goals in successful and effective budgeting. These will provide you with peace of mind and will allow you to make good decisions in spending the rest of your money without fear.
Budgeting ensures you that you always have enough money to cover your basic needs and the other things important to you. Realistically speaking, it could take a few months for you to become fully adjusted to a daily budgeting routine. Your budget may not be as perfect as you have envisioned it to be during your first few months. But as you become used to this budgeting lifestyle, don’t forget to be kind to yourself and focus on making daily decisions with your financial goals in mind to help establish new habits for you.
If you are thinking of moving in to a new condominium, check out Vista Residences!
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. that offers ready for occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to premium universities, transit oriented locations and developed business districts.
At Vista Residences, unit owners can take advantage of the property’s centrality. The properties of Vista Residences are strategically located near the country’s premium universities and CBDs, making them an attractive investment for both local and foreign investors.
Living in Vista Residences enables you to enjoy convenience, where everything is pretty much within walking distance or a few minutes away from the property; comfort because the project features and amenities are designed to deliver comfort at all times, which makes condo living a worthy investment; security that is 24/7 and CCTV monitoring, which makes the residents safe and secure within the property.
In line with Vista Residences’ thrust to offer convenience among its residents, it also features an AllDay Convenience Store and Coffee Project in all its projects.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.