Required: budgeting and money management skill

Money comes and goes away quickly. Whether we earn little or much, we need to properly plan and allocate our finances appropriately so we can have enough for our needs, savings, tithes credit repayment, other personal spendings and have spare cash in case of an emergency.

Making a budget is important to ensure that we are able to provide for the essential needs for current living and for future security such as when we have unforeseen events such as sickness, accidents, deaths and eventually for retirement when we're in old age.

I know I needed to do this since I started working. In fact, every single purchase is documented so I can trace where my money went. I started planning on how I would make ends meet or ideally never run out of cash but have more for savings. But it is easier said than done. Spending is just much easier than saving. I discovered a better way.

Recently, I became a member in a local cooperative in our city. As a requirement for membership they hold a seminar where they discuss their background, services, benefits and boy! I was surprised that they also prepared a talk on family budgeting and financial counseling They even included a presentation for gender development and family enrichment.

From this seminar, I learned that we should plan all our resources appropriately - and this does not only apply to money but to our time, effort and space as well. So I am gonna share the guidelines for successful budgeting that I have learned from this seminar as follows:

1. The family should know why it needs a budget or plan. The objectives of the plan must be clear.

2. The family budget or plan should especially be suited to the family income, needs and desire.

3. All members should be brought into the plan with each one being responsible for the success of the plan.

4.The plan should be revised periodically and hold family counsels on it.

5. The members of the family should keep in mind that it is important to have a good family income and use it wisely.

6. The members of the family should make up their minds and stick to the agreed budget.

Although these guidelines are for families, I think the same rules apply to individuals. Living within means is good but it is better to live below our means (lifestyle) identifying needs from wants. Sticking to the budget is very important and this requires self-control and discipline. I've learned from my experiences in the past - those should help me wiser decisions at present and in the future.