Money Management: Create a Realistic Budget

Many don’t know what is going on with their money. It is therefore important to set up a budget. You need to know what is coming in, and where you are spending your money. However, if your budget is too rigid and strict it will leave you frustrated…

You therefore need to make sure that your budget is realistic. 

While you should include some non-negotiables in your budget, like putting God first and saving before you spend, you also need to have enough flexibility in your budget to make allowance for your needs and opportunities that may arise. 

There’s no use setting a strict budget based on drastic changes, such as not setting funds aside for entertainment when you are used to eating out twice a week. You need to create a budget that is realistic and that works for you.

Make sure that your budget aligns with your lifestyle. 

Instead of making drastic changes, make small realistic tweaks in your budget and create a budget that works for you. 

“Not that I was ever in need, for I have learned how to be content with whatever I have. I know how to live on almost nothing or with everything. I have learned the secret of living in every situation, whether it is with a full stomach or empty, with plenty or little. For I can do everything through Christ, who gives me strength.” (Philippians 4:11-13)

Yes, it is vital to get your priorities in the right order and to ensure that your budget helps you to form good financial habits, but make sure to give yourself a realistic shot at achieving your goals.