Why is Budgeting so Important?

Kofi Gyebi
Founder, 400LB Elephant

Got a budget?

You might be asking yourself, why is budgeting important? Budgets aren’t just guides for paying bills. A good budget will  give you a very definitive snapshot of your income, expenses, and what you should have saved after you pay off your bills. Do you have a budget? When was the last time you reviewed it? Is it in a drawer?   I thought I didn’t eat out much and without taking a close look at my finances I wasn’t sure how much money I was spending on food. Oh, what you think you spend and what you actually spend are two different things. Luckily I can eat the same thing for weeks but cutting down drastically on grocery bills helped me save a lot of money fast. Checking what you have at home and knowing what you plan to cook before going to the grocery store is a serious life hack. Going to the grocery store on an empty stomach and buying recklessly leads to uncooked food that will spoil.

What is a budget?

A budget gives you the power to direct your money. You have to understand that having a plan for your money is like any other plan we have to better ourselves. Before you start your journey to having financial freedom it is imperative you know where your money is going. That generally starts with an audit of what you are spending your money on. Whenever I’m coaching someone I always ask them if they’ve audited themselves. They’re usually reluctant but the conversation that ensues is filled with how surprised they are they spent so much money on coffee, food, bottled water are a few examples. The biggest revelation next to the silly things we spend money on is how much we could be saving by cutting out little things. 

Once you have a budget and you are committed, emergencies and sinking funds you won’t wreck your budget.  The way life is set up those small things that cause chaos however you cannot let those things deter you. Reach out to us and we’d be more than happy to share our templates with you.