Tuesday, January 12, 2016

Pains you are likely to suffer for failure to budget properly in 2016

TWS_Wahome Ngari

When was the last time you prepared a budget? Do you budget for your personal expenses, be it at home, place of work? If you were to be asked today to give an account of how you spent your money last year, month, week or even yesterday would you be in a position to do it.

Are you in a position to tell the next person you are meeting today or your family what your budget estimates for the next three, six or 12 months is going to look like? As Wahome Ngari – a seasoned motivational speaker, who is well polished on the money matters subject reminds us in this article, failure to budget has a very high potential for inflicting severe pain.

.....Budgeting tends to be a painful process both at the business level and also at the personal level because it is a delicate act of providing for competing interests in an environment of limited resources. It may be for this reason that some people view budgeting as self-denial or even unnecessary suffering, but let us agree on the onset that failing to budget is willingly plunging into financial fog.

At a personal level, there are those who hope they will budget when their income goes up, but experience has shown that when income raises, expenses creep in from everywhere to take care of the increased income and the financial status fail to improve, causing life to get tougher financially even as years roll by and one day the big retirement landmark shows up.

At this point the person usually has no money and is without capacity to make money thus becoming a liability to others. The unreliable support structure for such a person may comprise of their children, siblings, general society or the government of the day.

By failing to budget, a person opens themselves to several pains during their financial journey of life. Some of the challenges include;

  • Interpersonal and intrapersonal conflicts which arise out of the failure to honour commitments. Would avoiding these conflicts be part of the reason people tell unnecessary lies? These conflicts generate financial stress which can be expressed through frequent unexplained headaches, lack of sleep as a result of money worries, poor health which may results into ulcers, migraines, high blood pressure and money other health issues.

  • Low quality of life which results from low productivity and lack of concentration because financial pressures causes a person to have a scatter brain which tends to see money elsewhere other than where the person is. This can lead to pursuit of greener pastures elsewhere which tends to turn into a mirage.  
  • Consistent money pains may result into low self-esteem, lack of self-care, low quality of family life characterised by emotional outbursts which can eventually result into suicide. 
  • It is not abnormal for a person to end up with a heavy load of debt even as they hang of the financial cliff.
If you need more help on how to grow your financial literacy, ask us about the Wealth Creation Masterclass where such concepts are taught.

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