2 Simple Tips For Effective Personal Budgeting

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There are two types of budgeting:

Basic Budgeting

Basic budgeting simply means to know where your money is coming from and where it is going.
You need to know the revenue and expenditure of your home.
The budgeting of your home finances is meant for you to stay in line with your basic needs as
well as the wants of your heart. Basic budgeting is meant for basic needs as well as wants.
However, basic needs include the basic needs of your body and the wants of your body.
You may not think that you have a need to go to the gym, but you do.
You may not think that you will like going out with friends on the weekends, but you do.

Extra Budgeting

Extra budgeting means to create new needs and to figure out new means to satisfy your needs.
To find out, you need to know where your income and expenditure is going.
This means you need to make a list of your salary and your bills.
You need to spend the money you get and save the money you pay out.
This means you need to balance your income and expenditure of your home.
This may be very difficult, but you need to do it so that you can
find a balance between your needs and your wants.

By the way, you may need to create another line item to
make a list of a monthly income and a list of a monthly expenditure.

A budget is a financial plan.

The person who has a personal financial budget, is the financial planner.
The one who is the financial planner, is the one who has a budget,
because he or she has figured out where the money is coming from and where it is going.

It is a plan to transfer money from the income to the expenditure in a particular month.
It is meant to get your money in order. If your monthly budget is not in order, then it is a cause for concern.
Your budget may be a basic budget or an extra budget, but it is never an ordinary budget.

Planning for personal needs

It is meant for basic needs, if you do not think you have needs, then this is not a budget.
Your needs are your body needs and your wants are your want list.
You may like to go out with friends, but you do not have a want to go out with friends.
You may like to eat healthy food, but you do not have a need to eat unhealthy food.

You may want to use coupons, but you do not have a want to buy products with coupons.

This budgeting is for things that you like to do.
If you do not like to do junk food, then this is not a budget,
because this is something that you do not have a want to do.

What is an income budget?

It is a plan to transfer money from the expenditure to the income in a particular month.
Your income should be above your expenditure in order to receive money in that month.

This is meant for basic needs, so that you may avoid a huge expenditure.
If you do not have enough money in this month,
it may mean that you have a need to spend the money in a particular month.

Your expenditure should not exceed your income by much.
If you spend all your income in a month,
then it means that you have a need to increase your income in a particular month.

The income should not exceed your expenditure in a month.
If your income is always over your expenditure in a month,
then it means that you have a want to spend the money in a particular month.

What is a expenditure budget?

It is also a plan to transfer money from the income in
a particular month to your expenditure in a particular month.
Your expenditure should not exceed your income in a particular month.
If you spend all your income in a month, then it means that
you have a need to increase your income in a particular month.

The expenditure should not exceed your income in a particular month.
If you spend all your expenditure in a month, then
it means that you have a want to spend the money in a particular month.

When you put out the expenditure for the income in a particular month,
you should have a plan of reducing your needs.
If you put out the increase in your needs in a particular month,
then you are having a want to spend the money in a particular month.

How to take out a need?

The way to take out a need is to have a need in a particular month and
then to create and plan a need in a particular month.
If you have a want to spend the money in a particular month,
then you are having a want to spend money in a particular month.

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Wandji Nguemako

Wandji Nguemako is a writer, editor, entrepreneur and public speaker. Having been an entrepreneur, educator, and fashion designer, Wandji now focuses his work on personal development, wellness, and spiritual growth. He is the founder of Self Renewal Magazine, a digital publication that promotes self-love, kindness, and wellbeing, where he chronicles his journey of self-discovery and shares actionable strategies to help others live their best lives.
"You must nurture your own inner being to accept yourself as you are. If you don't accept yourself, you will never be at peace with yourself."