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

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Financial stability does not only depend on how much income we make but also on our management. There are people who earn so much but still run deficit because of poor planning and unnecessary spending.

Budget planning helps us control our spending and meet our need when needed and save for the future. In this post, I will share how I plan my budget, put down my expenses and save money for future challenges.

How do you plan your weekly or monthly budget? Explain well.

Usually, I plan my budget at the begining of every month because I already known my income and my monthly expenses. After that, I divide the income into different categories according to priority.

For example, If I earn #100,000 in a month, my budget may just be like this...

Items	Amount
Tithe and offering	#10000
Food and groceries	#25000
Transportation	#3000
Utility bills	#10000
Family needs	#30000
Savings	#20000
Miscellaneous	#2000

I always look out for my needs more before considering my wants. This process help me mind my spending and ensure that important needs are met first. I am accountable for all income I make in a month.

What tool or method do you use to track your expenses? Show at least one tool or method in detail with a selfie.

The method or tool I use often is a very simple one known as “expense-tracking notebook”. Everytime I spend money no matter what, I record it immediately to keep account and to know when I am over-spending.

Date	Items	Amount
01/06/2026	Breakfast	#2000
01/06/2026	Transport	#1500
02/06/2026	Groceries	#3000
03/06/2026	Mobile Data	#4000
04/06/2026	Lunch	#2000
05/06/2026	Snacks	#1500

	My Expense Tracker

A selfie with my tracker

At the end of every month, I review all my records to be able to track where my money entered and to mark where areas where I can reduce my spending.

What are the unnecessary expenses that affect your income? Explain.

Some unnecessary expenses that affect my income include:

• Buying snacks and drinks all the time

Most times when I am outside, I get attracted to some snacks that would cost me so much at the end of the day, resulting to my unnecessary spending.

• Excessive mobile data usage

It has become a thing in my country that everyone spend so much in buying mobile data on weekly and monthly basis. Most times the total mobile data in a month is almost summing up monthly income and I wonder why??

• Spending money on items I do not urgently need

There are things I don’t urgently need but when I see them, I get attracted and want to get them because I know I would need them some day.

• Unplanned transportation expenses

Ya, there are times I don’t plan to spend transport fare coming back from church but when the free bus is not available, I am left with no choice than to sort it out.

Although these expenses may seem small individually, but overtime, they accumulate and reduce the amount available for savings and other essential needs.

How do you save money from your income that will sustain you for future hardships?

I have watched my mom do this saving thing over time so I practice the “save first, spend later” principle. Immediately after receiving income every month, I set aside a portion for savings before spending on anything else.

I try to save at least 20% of my income every month. These savings serve as an emergency fund for unexpected situations such as medical expenses, school fees, family emergencies, or periods of low income. I sometime get calls from friends who need help because the country'economy is not smiling this time.

I also avoid withdrawing from my savings unless it is absolutely necessary.

Have you ever created a budget that would improve your financial situation? Show us practically how

Yes I have. Previously, I used to spend money without a clear plan of my spending. Once I come home and make some money, I spend them immediately on food and other needed items. At the end of the dat, I find myself short of money before the end of the month.

But after creating a structured budget which I learnt from my teacher, my financial situation improved significantly.

Before Budgeting

Expenses	Amount
Random spending	#7000
Food	#6000
Transport	#4000
Savings	#0

After Budgeting

Expenses	Amount
Food	#6,000
Transport	#3,000
Family Needs	#3,000
Savings	#4,000
Miscellaneous	#2,000

Through budgeting, I was and still able to reduce unnecessary spending and successfully build a savings habit that has helped me today.

What advice would you give to others for great budget planning?

For a great budget planning, my advice to others arr;

• Always track every expense, no matter how small

• Separate your needs from your wants. (Very Important)

• Save a portion of your income before spending. That is save first, spend later.

• Avoid excessive buying.

• Check out your budget regularly and make adjustments when necessary.

• Keep an emergency fund for emergency situations.

• Live and spend within your means and avoid unnecessary debt.

Conclusion

Budget planning is a very important financial habit for saving and controlling our spending. It helps us keep track of our daily, weekly and monthly expenses.

By tracking our expenses often and maintaining a savings habit, we can build a more secure and stable future for ourselves and our families.

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I invite @eliany @mariami @pandora2010