SETTING A BUDGET

Hi! Assalamualaikum.

Sometimes, we can feel overwhelming when we think about the idea of budgeting.   

It just feels like the thought restricting our spending may be the last thing we want to do, right?

‘But a good budget isn’t about restriction or doing without. It’s about freedom.’ – well-said by Kumiko, the blogger of The Budget Mom.

Actually we manage to afford the things that matter most to us by doing a well-planned budget. So, let’s find out on how to start doing it. 

HOW TO START A BUDGET? THE BASIC STEPS:

We can increase our income

Even though we’re restricted by our income limits at this moment in time, it doesn’t mean we have to earn the same income level forever.

Each one of us has the potential to earn extra money. We just should ask ourselves if we’re willing to make the changes to our life that earning more money will require.

To earn more money, we can try getting a second job or pick up side hustles. Yes, there's sacrifice to be made for that choice. We may have to give up time doing something else we want to do in order to make the time earning more money.

We can decrease our spending and expenses

Another way we can do to improve our finances is to decrease the spending. I think this is where most people need to start. Honestly, I choose this option too.

We can only cut spending so much. Take that into account. We’ll still need the necessities like food, shelter, and clothing. No matter how tight our income is, there are often ways to find hidden money in our budget. 

Making the Choice

Decreasing spending or increasing income, which one would be the best option? Both work to help us create extra money in our budget. It depends on us to start with a choice.

Just ask ourselves. Are we going to try to cut spending and expenses? Do increasing our income will be a better fit for us?

As for me, I chose to decrease my spending. I don't have much time to come with committing a second job as I'm struggling with my main career and postgraduate study. So the second one is the best choice for me. 

Yes, it is quite hard at the beginning of decreasing the spending. I had to cut off buying my favourite stuffs and doing things I like to do. It is considered the sacrifice I made to live within my means. Actually, I'm also thinking about doing a side hustle but I just don't know what is the best thing to do. To own a small business, or become a freelancer? I still don't decide it. I hope there's a great decision to come. (Wish me luck, okay.)

Increasing our income may be the best choice if we truly don’t have any money left over after paying our essential bills (housing, transportation, food, etc.) and existing debts. However, most people can benefit from taking control of their spending as well.

If we are capable enough, some combination of the two strategies combined works best.

So, let's have a look on what financial situation we’re in currently. I believe there’s a way to make it better. Just bare in mind that improving our finances requires change, which isn’t usually comfortable.

Financial change, in particular, requires hard work, dedication, and a whole lot of determination. Plus, we may be faced with financial challenges that make the process harder or slower to get started. 

Wallahu'alam.