BUDGETING, SAVING AND INVESTING.
The three keywords that form our title are interwoven. They are closely
linked in the sense that, if you want to invest in anything financially, you
must save. Then for you to save, you must also have a workable budget. We
shall be considering each of these keywords in detail.
The Oxford Advance Learner’s Dictionary defines a Budget as “an estimate
or plan of the money available to somebody and how it will be spent over a
period of time”. We can then say that the art of making a budget is called
Budgets are common with government establishments, companies and
individuals. In this piece, we’ll be focusing on Personal/Individual
Budgeting. Budgeting is very important, for it saves us from wasteful and
reckless spending. Mr. Lanre Oyetade of the Tribune titles in one of the
Editions of his Money Talk divided the concept of Budgeting into two types
for personal Budgeting. They are,
1. Debt-free Budgeting and
2. Debt-servicing Budgeting.
1. Debt-free Budgeting
This is the budget proposed for someone who is without a debt i.e. owes no
one. It is broken down into,
10% for tithes,
10% for Savings,
10% for Investments and
70% for Daily/periodic needs such as feeding, housing, fees, clothing etc.
The percentages listed above refer to that of the total money available as
2 Debt-Servicing Budgeting
This type of Budget is for those owing debts. They are by this urged to pay
as they get their income instead of deferring payment. It is broken down as
10% for Tithes,
10% for Debt Repayment,
10% for Savings,
10% for Investment and
60% for Daily needs.
We also have what I call, functional and non-functional Budgets. Some
people make budgets and abide by them strictly, this is a functional budget.
While others just make budgets for the sake of it and don’t implement them
making them non-functional. Recently, the National Assembly made us
know that some money budgeted wasn’t actually spent but kept in some
accounts and also government budge