Budgeting & Saving

A budget is a breakdown of your income and expenses for a specific period. Creating a budget allows you to keep track of what money is coming in and what money is going out. It is an organized way of looking at what you can and cannot afford. It is also a great tool to assist you with managing your money, whether you are making a significant amount or a small amount.

We are sometimes confronted with unexpected expenses; whether it is car repairs, a broken washing machine or a medical emergency. If you have wasteful spending patterns, these types of unanticipated issues can lead to additional stress. However, with a budget it can help to provide clarity as to the monies that are available for use to address the unexpected expenses. It would also show you whether or not you are over spending and if there is need to implement a strategy to control costs.

Creating a budget also helps with saving towards a future goal. For example, if you want to save towards a vacation, down payment on a house or for your child’s college education, a budget is essential to achieving that goal. To implement a savings plan, the following steps are essential:-

  1. Clearly state what the goal is that you are trying to achieve. For example, a plan to pay off your credit card debt.
  2. Determine how much would be required to achieve the goal i.e. how much do you owe on your credit card.
  3. How much you would be required to save or pay monthly towards your outstanding debt for it to be repaid fully within the next 2 years?
  4. State why it is important to attain that particular financial goal. 5.The time frame in which to achieve the goal is also essential.

The budget plan would help you to stay focus, reduce some of your “wants” and keep you on the path to financial freedom.

NCBA offers many short and long term saving products that can assist you with saving funds for whatever purpose. Visit our savings page to learn more.

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