Importance of Personal Budgeting

Have you heard the word budget before, and do you know how to prepare one for yourself? 

Come with me as I break down the subject of budgeting to its simplest form and why it matters. 

Simply put, a budget is a deliberate plan written down which determines how much of your money or income should be spent on what for a specific period. A budget can be weekly, monthly, etc, depending on your choice.  

But the question is, why should you subject yourself to the will of this sheet of paper called budget?  

Below are a few reasons why that is key. 

1. A budget helps you avoid impulse buying

Impulse buying means buying something you have not planned for but because of its attractiveness. When you are walking in the market square or even on the street, and your eyes like seeing nice things like mine, then the likelihood of buying something you haven’t planned for is high. That is why having a budget is important because it restricts your expenses to only things you have planned for, except for emergencies. 

2. It helps avoid overspending

This differs from impulse buying. In this case, you have planned for things alright, but you may end up spending more than expected. It is true that just having a budget may not be the solution, but being disciplined and sticking to your budget will help you avoid overspending. Your budget must be your compass showing what you can and can not do at all times. 

3. Helps to handle emergencies

Life is full of uncertainties, and so it is expedient to have a budget allocation to cater for unforeseen circumstances. This will help you to avoid embarrassment or frustration when the unfortunate happens. In doing this, you can literally smile through those darkest moments in your life. 

Having said all this, let me emphasize that having a budget itself is not the solution. It is being disciplined and sticking to your budget that is the game changer. There is no point in having a budget and not following it. 

Let me conclude by saying if you are looking for any financial support to help you expand your business, worry no more because SRF provides business loans to individuals and companies in Accra.

Visit our website at for more information.

You can call us as well: 0501565882/0240061709