Budgeting

Budgeting is an important step in achieving financial goals and maintaining control over one’s spending. Whether as a private person, company or government, budgeting is an important skill you need for your life.

That is why we have dealt with this topic on Tuesday 12.03.2024.

What is budgeting anyway? Budgeting is the process of planning your budget and ensure that you do not spend more then your means.

You get an overview of the income and expenses you have. So you can divide the available capital and plan for the month.

During our session, we collected all the potential expenses, including the ones of housing, food, transport, entertainment, health and so on. This way we got a clarer picture of what are the unavoidable expenses, and where can we save.

Why go to the trouble? Budgeting gives you an overview of what you spend money on. You can see where you might prefer to save in order to be able to use more elsewhere. It also promotes the conscious use of money, which nowadays is in danger through platforms such as Temu and all the commercial world conspiring against us to consume more that we can actually afford.

A tip for budgeting is to write down each spending and divide it into categories. If you do this right after the purchase, you can't forget it :) At the end you have a list that shows how much you have spent and on what. There are several helpful applications, but you can also use an excel sheet or an old school exercise book.

Budgeting is an indispensable process for efficiently managing financial resources and achieving private and business goals. It does not matter if it is for private use or in companies and even as a state.