To Plan or Not to Plan
There are two types of people; those who plan and those who do not plan. Those in the second camp, breeze through life but will end up going nowhere.
Planning is a word we are all too familiar with; however, its importance can never be over-emphasized. In this life, anything substantial requires some careful thought ahead of time.
In Luke 14:28 – 30, Jesus taught the importance of this. He said no one should build a tower without sitting down to “count the cost.” Now, Jesus was talking about discipleship – examine your situation and plan for the costs. This works for money too. Planning ahead is important for success.
In Personal Finance, planning means telling your money what to do each month by creating a budget.
Creating a budget should not be a casual afterthought. You need to engage your pencil, paper and calculator (or Spreadsheet) and tell all that cash who is in charge.
You don’t spend first and budget later; some people practice this, and that explains why they do not know where their money went or why they never seem to make enough money. You should make a budget even before the cash hits your account. Preferably, budget for a period i.e. weekly or monthly.
There’s something called zero-sum budgeting. This is the most efficient way to budget. It means assigning a budget item to every Naira (or Dollar, Pound, whatever your currency). In a zero-sum budget, every single Kobo has a name and a job to do – including Savings and Investment.
The goal is to make your Total (Inflow minus Outflow) equal zero. If you do this math and your result is more or less, go back and tweak your budget till: Income – Expenditure = ZERO
As a Christian when you budget, keep in mind that you are a Steward of God’s money. So, let Him have the final say on what goes where. That way, you rest assured that God is in charge!
“If you aim at nothing, you’ll hit it every time.” – Zig Ziglar
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