Why your budget must be realistic.

[TOZZIBLINKZ]

The aspect of budgeting is crucial if you want to cut out the habit of irrelevant or excessive spending . They have a lot of people who love spending because they have the money but what they really do not know is that they are putting their future at stake , yes spending without consent and proper thinking is a very bad habit which every business owner or entrepreneur must do away with . If a business owner spends without proper thinking it could put the business at stake which is what we are trying to avoid by all means.

So in order to eliminate irrelevant or unthoughtful spending act of budgeting must come to play , and budgeting is also considered as a movement of truth in which you have to be realistic in anything that you intend to buy . Keeping to budget and not buying above your budget shows that you are financially law-abiding , it also shows that you are more concerned about the future because unforeseen circumstances are prone to happen at any time , and one funny thing is that they may not happen when financially equip it's sometimes happen when you are financially down . Some unforeseen occurrence could include : illness , payment of urgent bills , unplanned traveling for business related activities etc . So when things like this arises saved or unused money can assist.

So in summary we have to be realistic in our budget , in other words we have to keep to our budget not tempted to buy irrelevant things . Because time and unforeseen occurrence might hit us when we are not financially equipped.

 

[Jasz]

When you prepare a budget, you should always be realistic.

This is true whether you're creating a marketing budget, an operational budget, or any other kind of budget. If your projected spending isn't grounded in reality, then it won't be useful to you or anyone else. You'll just have a list of numbers that have nothing to do with the actual financial situation at hand, which will make it difficult to make decisions and plan for the future.

So what are some ways you can create a realistic budget?

First off, take your time. Don't rush through it—if you do that, chances are good that you'll miss something important and end up with a budget that doesn't match up with the way things actually are in your business. Instead, take your time and make sure to examine every aspect of how you spend money.

There are plenty of resources out there to help you create an accurate budget. For example:

If this is the first budget for your new business, consider hiring someone who can help you figure out how much cash flow you should expect in each month and what expenses might be associated with running a business like yours.

 

[Abigael]

It is very important to have a realistic budget for sure. Budgeting helps prevents you from excessive spending of money. That way, you never go broke easily and can deal with any financial challenges that may occur. When you have a budget, it guides you on spending money on the right things which include basic needs such as good or clothing.

It is important that when going for shopping, you know exactly what you need and how much it might cost. That way, you only walk around with money that is enough for your needs. This will help you control impulsive spending.

It is always great to save for any emergencies that may occur. It could be so unfortunate if an accident occurs or you get sick and don't have money to pay for medical bills. So budgeting enables you to have some money that you can save for emergencies. It also allows you to have necessary insurance for such emergencies.

 

[Kendy]

Exactly, when preparing a budget, your needs should always first be of utmost priority before your wants if the budget is still excessive. The essence of having a realistic is to help you spend within your means. Although, even with the realistic budget, when you eventually purchase the items, the prices of the product will be on the increase higher than that of the budget stipulation. There is no need having a budget where your means of income cannot cater for. There are people make budgets which is above their means and they bring the notion of hoping to make more money when in reality, they will not attain the objective at that stipulated time. Making a realistic budget is very essential especially in these times were the prices of goods are on the increase. I recommend using the scale of preference to make a practical budget and also, you should substitute some needs, for instance, if you needed a Brazilian wig of $500, you can go for a Peruvian wig of about $150, this is living within your means, this is because living above your means is detrimental because in no short distance, you will run into so many bad debts.

 

[Kingsley]

This is one area that has affected many of us in our every day life we don't seem to be realistic with our plans and budgets hence we might end up not achieving any of the set out goals and objectives that we have for ourselves. Budgeting is a very crucial area of our lives as we can not just use things the way we see them, there must be plans as to how we should manage our resources. As we know the human wants ar insatiable but the available reasons are limited in supply, hence we must learn how to differentiate our needs from our wants. This is posed alot of challenge for millions of people as they sometimes confused their wants from their needs. Both of them are not the same. A need for something has to do with pressing matters while want on the other hand could just be essentials but not compulsory. So by the time we draw up a scale of preference, this will help us itemize our needs in a rank other and we will begin to draw out the most pressing ones from the pack, by so doing we will have a viable budget.

 

[Rachael]

Our budget must be realistic so we do not live above our means. These days, working with a budget is very hard and it makes it almost impossible to even have a meaningful saving goal. Sticking to a budget in recent times is almost like a camel passing through the whole of a needle. There are times when I make a budget and I cancel it several times due to the income. It is a sad reality, that most people live lower than the budget that is needed even though so many needs are forgone.

I make a budget every month and at the end of it, I try my best to stick to it, but the reality is that, when I start purchasing those products, it makes me feel like I lost some money while I was shopping. The prices of goods and services is really on the higher side and the best thing we can do is either to use strictly a scale of preference or make use of the opportunity cost as well. Another alternative would be to take up multiple jobs which can augment for our needs and rhymes with our budget. No matter how much we earn, we should live within our budget to avoid incurring debts.