Budgeting vs. Savings

Hey there Hive bees! Here is another thoughts of me regarding some financial topics that i wanted to share to you guys. Since I am starting to understand how money works in our daily lives, I will cope with basic topics regarding money on its basic use and help in our daily needs. Well, money is really making our life easy specially if you got many.

Money topics almost ending up with mixed emotions. Some are contented, struggling, well off or even sensitive regarding money. With all the things happening in the world right now, prices of daily necessities such as water, power, foods and even medical related items keep on going to the moon, I mean rising up that sometimes its hard to keep up. Experiencing this situation first hand, its really an headache type of event when you are keeping your budget tight and the struggle is real to keep up your days with what is left before next arrives.

Budgeting and Saving are two financial concepts that always mentioned together. Most people tend to learn and compare on what have they done with their money. If ever meeting such type of conversation, better learn rather than getting jealous to what the other party's achievement about his financial gains so to be educated and not loosing your goals direction. Different people have different type of life and luck, so live yours.

Budgeting

This term is strictly part of our daily life. It's spending for our daily needs which we planned before getting another one. It is inevitable consumption of money. Well, simply because we need to live so that is why we need to spend money nowadays not just for comfort but it is really a must. Normally we are doing this here in our country, Philippines, every fifteenth or on monthly basis. The examples of the things that we usually allotted the budgeted money for our daily expenses are food, gas money or public transportation, utilities ( Load, internet, water, electricity), and education. If there are extra's to the budget, which is hard to do nowadays, we can buy new things for our family. House rents are also necessities here in country but if you own your house, the yearly real estate property tax must be ready. You want to spend on other things rather than the mentioned above? Well you can do that, but later you still need to provide payments for this things. This needs are already part of lives that we cannot avoid to spend our money with. We just have to do it. Budgeting is not necessarily means hard to oneself. It just helps you prioritize between wants over needs so to not overspend.

Savings

It refers to the portion of an income that was set aside and not spend. A money reserve that can you use for future. Your reserve bullet. Why saving is important here in our country? Well probably not just limited here but generally or almost to everyone, Because most of us Filipinos got limited access to government support for emergency or alike situations. Savings acts as our safety measures for this types of situations. And also, savings can save you from borrowing money that yield to high interest then stress you out. So savings also can be a preventive measure to the disease called debt.

Practical Tips for Spending

1. Start Simple - List what you are aiming for with your money.

2. Follow the 50-30-20 Rule
   50% Needs
   30% Wants
   20% Savings

3. Separate Savings Accounts

4. Involve the Family - Discuss budgeting and savings with your spouse or family. Financial goals are easier when everyone is aligned.

5. Track Expenses with your preferred schedule.

Final Thoughts

We should not treat Budgeting and Savings as rivals in our income. This two are partners that can save us a lot for money troubles. Budgeting just simply tells us where should we spend our money while Savings is the key that can get us out of the money problem. They work together for our life convenience regarding finances. Tracking your expenses, discipline for not overspending and you just buy what really is important outside your daily needs can help you maintain your budgeting and savings worry free. We must also remove the mindset that savings are just for rich or well off people. We just have to do it. Small amount can still make a big difference in the future with consistent accumulating. Right?

Disclaimer:

• I am not a financial advisor. The information provided on this blog is for educational and informational purposes only and should not be considered financial advice.

• No copyright infringement is intended. I do not own nor claim to own the rights to any of the images shared.