Simple Steps To Personal Finance Management – Budgeting

Have you ever wondered why some people seem so organized financially, even amidst hard financial times? Do you wonder why such is the case, yet you know that you earn a similar amount of money as they do or probably more? Well, there is an open secret you that have refused to use and this is a budget.

While saving and money management has been a huge pain for most people, some folks thrive doing this – managing their finance.

When it comes to personal finance management, budgeting is very important, by this, I mean, identifying your needs from your wants. Also, Discipline is one of the major traits one must embrace with all your mind. This keeps you going in the long run.


Need is an item or something that will seriously affect the quality of your life if you don’t access it. A need must be met for life to proceed smoothly. Also, be mindful that, needs may stretch to wants if care is not taken. Some auto qualified needs would be, food, medication, tuition fee, shelter, clothing and so on.


Wants are something you can forgo and only the best it would do is cause minimal inconvenience. Remember this, any minimum payment that affects your life if you forgo is a need. Wants could be, a cable TV, designer clothes, entertainment clubs, haircuts from the top-notch salon and many more. This also does not mean you must always cut them out of your budget.

The benefits of making a budget are indeed many. For instance, having a budget is the safest way of getting out of debts i.e bank, property credit card and lots more.

Here is my 12 simple budget making process

  • Decide to work with a budget
  • Know what you have – the precise amount
  • Know what you make per month
  • Remember your debts
  • Determine your net worth
  • Determine your monthly income expenses (food, mortgage, transportation, etc)
  • Record all of the above in a database
  • Adjust various clusters in order of priority
  • Pay yourself first
  • Stay disciplined – Always keep track of your spending at least 2hours per week.

If you want to stay debt-free, you need to budget & stick to it. I assure you that most of the millionaires today know the power of a budget. Therefore, if you want to achieve your financial goals, there is a need to budget. Although beginning to budget and sticking to a budget will be hard at first, over time, you will reap the benefits of having it.

Thank you for reading through. I’ll be glad to hear your thoughts on this topic in the comments section! Your opinion matters.

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