SLC32-W2 || Real Life Problem Solving Challenge: Budget Planning

chiagoziee (66)Verified ✅ club5050in Steem For Pakistan • yesterday

Hello steemians, it's wonderful to be part of this wonderful challenge on our ways of maintaining funds and also making good use of them, join me as I dive into my financial strategy to stay financially stable throughout the month.

01 How Do You Plan Your Weekly Or Monthly Budget? Explain Well.

In the process of planning a monthly or weekly budget, we can sometimes find it difficult to set things in other in their. I plan my monthly budget by first of all calculating my total income for the month and then listing all my necessary spending like transportation, food, electricity, and savings. For example, if I earn ₦100,000 in a month, I usually allocate ₦40,000 for food and my transportation for the month, I also allocate ₦20,000 for bills and ₦20,000 for savings, leaving 10,000 for emergencies. This enables me to understand what and how I use my money, aiding me in abstaining from unnecessary spending.

The photo showing my monthly budget shows that I earn a total of ₦80,000 every month. Which for me is considered a comfortable income. After I am done creating my budget, I track my expenses throughout the month to ensure that I use funds properly. I usually prepare a daily spending budget on my notebook or smartphone. When I monitor my expenses, I am able to pinpoint the areas that I spend a lot on and make adjustments before the month ends, which sometimes leads to me creating a new monthly budget as the price of goods keeps increasing.

A Selfie with my monthly budget

After creating the budget, I track my expenses throughout the month to make sure I stay within my limits. I usually write down my daily spending in a notebook or on my phone. By monitoring my expenses, I can identify areas where I am spending too much and make adjustments before the month ends. This habit helps me remain financially disciplined and avoid running out of money unexpectedly.

02 What Tool or Method Do You Use to Track Your Expenses? Show At Least One Tool Or Method In Detail With A Selfie.

One of the methods that I rely on in tracking my monthly expenses is making use of an "Expense Tracker Notebook". I find this method more effective, simple, and affordable because it creates an avenue where I can document all the money for the month. Whenever I make a purchase, either for transportation, food data subscription, or even other needs I make sure I write them down in my notebook as soon as possible. With this, I am always aware of my spending habits, which helps me avoid wasting money on unnecessary items.

Example Of My Expense Tracker

One method I use to track my expenses is an Expense Tracker Notebook. I find this method simple, affordable, and effective because it allows me to record every amount of money I spend. Whenever I make a purchase, whether it is for food, transportation, data subscription, or other needs, I immediately write it down in my notebook. This helps me stay aware of my spending habits and prevents me from wasting money on unnecessary items.

Selfie with my expense tracking method

In order to follow this method I write down a table of columns such as Date, Description, Category, and lastly amount spent. Let's take for example I spend 1,500 on lunch I then record the date, write "Lunch" as the description, place it under the category "Food", and eventually enter the amount spent. And at the end of the week, I calculate the total expenses in each category. At the end of the month, I then make a review of the records and identify the areas where there is a need for reduction in spending.

03 What Are The Unnecessary Expenses That Affect Your Income? Explain.

In life we will definitely come across a lot of downs like unnecessary expenses, the unnecessary spending which affects my income is impulse buying. There have been a lot of times that I purchased things because of how attractive they are or because they were sold for a discount at the time even when I didn't need them. Sometimes it's either a snack here, new accessories, and sometimes I make online purchases which could seem small, but as the expenses pile up there starts to drain some cash which I could have saved or even invested. I have learned to ask myself "Do I really need this? Before spending to help me make better financial decisions.

Here is the list if this which I make unnecessary expenses on;

The first is eating snacks and eating out, sometimes it's hard to control how much I spend on food.
The second is won which I consider one of my weaknesses in utilizing funds which is buying water because I am not good at using water at a minimum level.
Another one is my unnecessary spending on data I just feel that data is something that's not manageable and I forget that with time I lose financial balance.
entertainment & lifestyle: this is the part where I use a little cash to buy clothes I don't need and sometimes visit some hotels for fun.

04 How Do You Save Money From Your Income That Will Sustain You For Future Hardships?

The method that I make use of to save savings from my income to ensure that I can still stand in times of hardship is making sure that I pay myself first. Whenever I receive money I immediately plan and set aside a portion for savings before I spend on others' needs. Let's take for instance that I earn ₦100,000 per month, I then allocate ₦20,000 for savings right away, and then make a plan on the remaining expenses with the ₦80,000 left. This is a method that helps me consider saving as a priority not an afterthought.

Another strategy I make use of is saving for emergencies. In our daily life, things can pop up such as medical emergencies, business setbacks, or even job loss. I maintain an active emergency fund contribution, which helps in reducing financial stress in difficult moments.

05 Have You Ever Created A Budget That Would Improve Your Financial Situation? Show Us Practically How.

screenshot of some months past budget plan that worked for me

Yes, I have created a budget that improved my financial situation. You can see that I used this method to adjust in the previous month until my income increased.

What made everything unique was that I consistently followed the budget and continued to review it at the end of each month. When I discovered that I had spent a lot on a particular category I adjusted my spending habits for the coming month. As a result, I was able to save more money, reduce wasteful spending, and feel more financially secure. My experience has taught me that a budget is not a restriction; it is a financial roadmap that helps turn income into long-term stability and financial growth.

06 What Advice Would You Give To Others For Great Budget Planning?

My advice for those who are driving towards creating a great budget plan is to constantly create a budget that is based on their actual income and to always ensure that their needs are met before they want. All you have to do is begin by listing out those items that are essential such as rent food, transport, savings, and utility bills. Once you have checked these important areas you can then proceed by allocating money for entertainment and your personalities. Creating a realistic budget enables the individual to prevent financial stress, overspending, and even debt.

Of course, you can't just follow a budget without tracking your spending and reviewing your budget regularly. Encourage you to always monitor your budget to help you stay financially healthy. If you record your expenses and compare them to your budget it becomes easier to identify your spending habits until which our necessary and then improve and make better financial decisions.

I would also encourage everyone to track their spending and review their budget regularly. A budget is most effective when it is monitored consistently. By recording your expenses and comparing them with your budget, you can identify spending habits that need improvement and make better financial decisions.