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Business News Wed, 26 Feb 2020

How to budget your finances for 2020

Education and Educators across the globe work so hard to include a wide array of studies within the required curriculum for students and young adults.

However, the most important aspect of life, financial/money management which is a key component for students of all ages is not thought in school. Even though financial literacy and money management is crucial to successful “adulting,” and life, there is no teaching of it in any school.

Until that change happens, though, here are the five key concepts to work on in order to improve your financial literacy. Mastering these aspects won’t always be easy but, with a little bit of practice, will benefit you for a lifetime. This is the reason why Jerry Jelili Afolabi has being teaching these courses and writing on them for the benefit of the people of Ghana and Africa.

Basics of budgeting

Creating and maintaining a budget is one of the most basic aspects of staying on top of your finances and managing your money for financial freedom. In this modern-day, it’s easier than ever to create a budget with the help of websites and apps. It doesn’t matter if math isn’t your strong suit, thanks to these user-friendly tools, everyone can get help with keeping their finances on track. And, when utilized properly, they will keep you in the know about where your money is actually going. Without following a budget, it’s difficult to hold yourself accountable on where your money is coming from and what it’s going toward, so mastering the basics of budgeting is where any financial novice should begin.

At any point in time, you can calculate average spending as against your income to give you a sense of what you need to do, it offers you the opportunity to easily create a budget based on spending

patterns. See how much you’re spending on what, year-to-year or month-to-month.

Plan ahead and see how much you’ll save cutting back in any category. You can even plan for one-time-only expenses and recurring monthly expenses.

Process

Start your budget by adding the income/salary you expect to make this month.

Next, make a plan for your income/salary. Every cedi provides you with a customizable template for budgeting your monthly expenses.

Follow your plan by keeping track of your spending throughout the month. Each time you spend money, create a transaction and track it to your budget.

Connect your bank account/mobile money account to your budget for faster expense tracking and easier budgeting each day.

Every cedi for me gives you hope and direction, two things that I, JJ.Afolabi desperately needed at this point in my life for financial freedom.

With a determination and commitment to follow this suggested process to get a self-budget can help you manage your finances for 2020 since a budget gives a guide for what you plan financially.
Source: Peace FM
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