Achieve Financial Freedom When You Start to Manage Your Budget Wisely

I admit. I falter with my budget. Not once. Not twice. Many times, actually. But that doesn’t mean I will have to stop. Budgeting is essential in any financial success. If you can’t handle a mere day’s worth of expense, how much more a month or year’s worth? Whether you want to free yourself from debt, save for the future, or achieve financial independence in the years to come, all your plans and aspirations won’t be worth a dime unless you know how to budget and stick with it.

If you are looking forward to living a financially worry-free life when you turn 60 or so, budgeting is the key. No matter how rich you are, no matter how high-earning, if you don’t know how to budget, and if you don’t stick to it, you’ll end up in a shaky financial situation.

I know a lot of people who live from hand to mouth. I read a lot of stories of rich people, famous celebrities and high-profile executives who still find it a struggle to live their lives despite having a sizable income.

The reason?

They think their pockets are unlimited. That they’re bank accounts are worth a gazillion. But, hey, even if you have a gazillion, but if you just keep on spending and spending without ever minding where your money goes, you’ll end up bankrupt in the long run.

I know someone whose husband works as a seaman. Let’s call her Karina. Karina’s husband has been seafaring since the late 80s and the hubby been out at sea for more than 20 years, but they still don’t have a house of their own. No investment portfolios, either. No sturdy savings for a rainy day, too.

When Karina receives her husbands’ money, all she would do is splurge on shopping spree, bring her three kids out for dinner in expensive restos and go on vacations in Tagaytay, Baguio, or Boracay at least twice a year. When the kids are at school and she feels bored, Karina would hit the local bingo hub and most of the time lost a few thousands.

In 2008, Karina’s husband met an accident while on the ship which forced him to go home. A year later, their savings dried up. Her husband was forced to look for employment. The sad reality is, Karina missed the chance of giving her family the opportunity for a life that’s free from financial trouble. If she only knew how to budget her husband’s money, if she only knew how to invest it, if she only knew how to give value to every hard-earned peso that came her way, she and her family wouldn’t end up in reverse circumstances.

Again, it all comes down to budgeting. Income does not equate wealth. No matter how big or small your income is, as long as you know how to stretch it, as long as you have that insight to make the most out of every penny that you’re making, then, you’re up for some bright financial future.

Indeed, how you treat your money reflects the way you live your life. If you think of it as a disposable object, then you’ll end up disposing and disposing the sooner you earn money. But if you think of it as a working asset, you’ll always find ways to make your money work for you.