Budgeting Basics: How to Take Control and Build Confidence With Your Money

 

 “Budgeting  is too restrictive!”

 “I do not even earn enough money so I cannot budget.”

“I make enough money. I don’t need a budget

 

Budgeting can feel overwhelming, especially when it’s clouded in myths such as these.

 If you want to learn to budget but  feel stuck start here:

 1.     Set realistic goals

The whole point of creating a budget is to help you reach your financial goals. But you need to be  realistic and budget based on your current income. Don’t budget for that “ka money” you’re expecting until you actually have it! Start by mapping out your monthly income and grouping your spending into needs (rent, groceries, transport, medical care).

 

2.    Give every shilling a job!

This means you allocate all of your money to your expenses, saving, investing, and debt repayment. This prevents you from spending what you don’t have.

3.    Budget for emergencies

Life happens, and you have to be prepared to pivot your spending when necessary. Create a cushion category in your budget to give yourself some flexibility with spending when unexpected expenses occur.

4.    Budget for the fun things as well

A budget is not meant to stop you from spending; it is meant to help you spend meaningfully. Set aside a small amount every month to buy or pay for something that brings you joy.

5.    Celebrate the wins

Review your budget regularly, adjust when life shifts, and celebrate every time you hit a financial goal, no matter how small.

Budgeting matters because it is the blueprint for how you earn, spend, and save. A budget helps you stay steady, clear-headed, and in control and that’s what building confidence with your money looks like!

By Martha Songa

miss.songa@gmail.com