The three keywords that form our title are interwoven. They are closely linked in the sense that, if you want to invest in anything financially, you must save. Then for you to save, you must also have a workable budget. We shall be considering each of these keywords in detail.
BUDGETING
The Oxford Advance Learner’s Dictionary defines a Budget as “an estimate or plan of the money available to somebody and how it will be spent over a period of time”. We can then say that the art of making a budget is called budgeting.
Budgets are common with government establishments, companies and individuals. In this piece, we’ll be focusing on Personal/Individual Budgeting. Budgeting is very important, for it saves us from wasteful and reckless spending. Mr. Lanre Oyetade of the Tribune titles in one of the Editions of his Money Talk divided the concept of Budgeting into two types for personal Budgeting. They are,
1. Debt-free Budgeting and
2. Debt-servicing Budgeting.
1. Debt-free Budgeting
This is the budget proposed for someone who is without a debt i.e. owes no one. It is broken down into,
10% for tithes,
10% for Savings,
10% for Investments and
70% for Daily/periodic needs such as feeding, housing, fees, clothing etc.
The percentages listed above refer to that of the total money available as income.
2 Debt-Servicing Budgeting
This type of Budget is for those owing debts. They are by this urged to pay as they get their income instead of deferring payment. It is broken down as follows,
10% for Tithes,
10% for Debt Repayment,
10% for Savings,
10% for Investment and
60% for Daily needs.
We also have what I call, functional and non-functional Budgets. Some people make budgets and abide by them strictly, this is a functional budget. While others just make budgets for the sake of it and don’t implement them making them non-functional. Recently, the National Assembly made us know that some money budgeted wasn’t actually spent but kept in some accounts and also government budgets haven’t been totally implemented. We should make it a point of duty to fully implement our budgets.
SAVING
Saving is the art of setting aside a part of something for future use. In this context, we will be referring to that thing set aside as money. One of the hardest things that man has not been able to form as a habit is saving. We learn a very common lesson on saving from the Ant which saves over 50% of its gathering.
We have seen from above that, savings is a part of the budget proposed for individuals. We can make this work by setting the 10% proposed or20% of our income aside. This leads us to the fact that we need to open a Savings Account with any reliable Bank to assists us in doing this. This is because, keeping the money with us is tempting and we might end up spending it.
It is expedient that we save before we spend and not save after we have spent. It is not always pleasant to save but at the end, we’ll be the better for it. Since money is just like what I call a seed and not just a consumable, we then need to invest it in order to grow the little we have saved.
INVESTING
The Oxford Advance Learner’s Dictionary tells us that when we invest, we “use money to buy for example shares or property, develop a business enterprise, etc. in order to earn interest, bring profit or improve the quality of something”.
From the above, we have seen the various uses we can put our saved monies to. We can also invest in the Capital Market by buying shares of Companies, bonds, debentures and investing in mutual funds.
In the area of business, we can look around our immediate environment and note the products and services that are lacking. This will serve as a very profitable area to invest in.
We can also invest in our children’s education because when they start working, the financial burden of taking care of them will be off our shoulders. Investing in educating one’s self is also very good. The more qualifications you amass, the more opportunities you have when you intend to change job to a high paying one. Joint venture businesses are also very good investment grounds but not without a written agreement on how profits will be shared.
The neglect of these principles is the reason for the current state of some government officials who go totally wretched after leaving office.
Definitely, we have really seen the importance of BUDGETTING, SAVING AND INVESTING in making a person free from financial problems that arise due to poor planning. It is my utmosts believe that you will put the lessons learnt into use.
BUDGETING
The Oxford Advance Learner’s Dictionary defines a Budget as “an estimate or plan of the money available to somebody and how it will be spent over a period of time”. We can then say that the art of making a budget is called budgeting.
Budgets are common with government establishments, companies and individuals. In this piece, we’ll be focusing on Personal/Individual Budgeting. Budgeting is very important, for it saves us from wasteful and reckless spending. Mr. Lanre Oyetade of the Tribune titles in one of the Editions of his Money Talk divided the concept of Budgeting into two types for personal Budgeting. They are,
1. Debt-free Budgeting and
2. Debt-servicing Budgeting.
1. Debt-free Budgeting
This is the budget proposed for someone who is without a debt i.e. owes no one. It is broken down into,
10% for tithes,
10% for Savings,
10% for Investments and
70% for Daily/periodic needs such as feeding, housing, fees, clothing etc.
The percentages listed above refer to that of the total money available as income.
2 Debt-Servicing Budgeting
This type of Budget is for those owing debts. They are by this urged to pay as they get their income instead of deferring payment. It is broken down as follows,
10% for Tithes,
10% for Debt Repayment,
10% for Savings,
10% for Investment and
60% for Daily needs.
We also have what I call, functional and non-functional Budgets. Some people make budgets and abide by them strictly, this is a functional budget. While others just make budgets for the sake of it and don’t implement them making them non-functional. Recently, the National Assembly made us know that some money budgeted wasn’t actually spent but kept in some accounts and also government budgets haven’t been totally implemented. We should make it a point of duty to fully implement our budgets.
SAVING
Saving is the art of setting aside a part of something for future use. In this context, we will be referring to that thing set aside as money. One of the hardest things that man has not been able to form as a habit is saving. We learn a very common lesson on saving from the Ant which saves over 50% of its gathering.
We have seen from above that, savings is a part of the budget proposed for individuals. We can make this work by setting the 10% proposed or20% of our income aside. This leads us to the fact that we need to open a Savings Account with any reliable Bank to assists us in doing this. This is because, keeping the money with us is tempting and we might end up spending it.
It is expedient that we save before we spend and not save after we have spent. It is not always pleasant to save but at the end, we’ll be the better for it. Since money is just like what I call a seed and not just a consumable, we then need to invest it in order to grow the little we have saved.
INVESTING
The Oxford Advance Learner’s Dictionary tells us that when we invest, we “use money to buy for example shares or property, develop a business enterprise, etc. in order to earn interest, bring profit or improve the quality of something”.
From the above, we have seen the various uses we can put our saved monies to. We can also invest in the Capital Market by buying shares of Companies, bonds, debentures and investing in mutual funds.
In the area of business, we can look around our immediate environment and note the products and services that are lacking. This will serve as a very profitable area to invest in.
We can also invest in our children’s education because when they start working, the financial burden of taking care of them will be off our shoulders. Investing in educating one’s self is also very good. The more qualifications you amass, the more opportunities you have when you intend to change job to a high paying one. Joint venture businesses are also very good investment grounds but not without a written agreement on how profits will be shared.
The neglect of these principles is the reason for the current state of some government officials who go totally wretched after leaving office.
Definitely, we have really seen the importance of BUDGETTING, SAVING AND INVESTING in making a person free from financial problems that arise due to poor planning. It is my utmosts believe that you will put the lessons learnt into use.
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