My Top 10 Most Budgeted Expenses
To budget is to have a well written down plan for your anticipated income, and how you plan to spend it over a period of time. The needs and wants we have in this life are numerous. In my top 10 most budgeted expenses, I intend to share my own experiences about my household overhead. This is geared towards helping you to have an idea of what takes up the bulk of your money and how you utilize the inflow.
Disciple is a must virtue for anyone wanting to take control of his or her financial life. Part of the discipline is to learn how to budget and track your expenses. This post is about you figuring out where your funds are going to and what you are spending your resources on.
What are those bills that consume the greater part of your money? Take out time to evaluate your spending, and you will be surprised at your findings of how much you averagely spend on each item.
When you are ready to do this exercise, your top 10 most budgeted expenses should exclude big purchases that are not too regular items like furniture, car, electronics etc. If a big purchase like house is to be included, then it has to be an ongoing mortgage running and the monthly remittance be put under the rent category.
From budgeting and tracking my expenses, I discovered that there are some items that carry the chunk of my income .
In order to know what my top ten most budgeted expenses items are, I categorized my expenses into rent, savings, groceries, school fees, transportation, debts/loan repayments, charity, utilities, airtime for phones, medicals, entertainments, clothing, car maintenance, cable subscriptions etc.
Next, I tallied all the expenditures from each category of spending for a period of one year. I merged services like light, water bill, maintenance and security together under the rent payment in order to ease the calculation. I then divided the total by twelve months to get average. This I did for all of the categories as shown in the table below to get what percentage I spend on each item..
My Top 10 Most Budgeted Table Of Contents.
|10||AIRTIME FOR PHONES||2.30%|
What I found out from this exercise is that groceries is the most expensive item on my budget as you can see from the above table. I have been keeping records of my expenditures for years which helped with the tabulation of the weekly and monthly expenses.
The table gives me the percentages of how much I spent on each group and the out come of this exercise is that in my family, we are now realigning our financial lives to reduce our grocery budget and cut down on our expenses.
If you have not been budgeting and tracking your finances, start taking actions immediately. The first thing to do without any delay is to have a budget and track all your spending. Do this for at least three months in order to have an idea of what your budget looks like. To help you organize and plan your finances better, categorize the items in a tabular form.
The number two item on my top 10 most budgeted expenses list is rent followed by school fees, transportation/fuel, debts/loans while the sixth is clothing which was quite a surprised to me. Clothing to me would have been among top 3 but is down the line. Charity/tithes/offerings, savings comes next then car maintenance and the last on the list is airtime on the phones.
The essence of this post is to spur Nigerians into serious financial planning. Majority of the people do not have a well planned method of budgeting; tracking, savings, and investing. With this guide you can
start taking these steps, one step at a time to know where the large percentage of your money goes to. To help you organize your budgets, read the 5 reasons why I budget and track my money. Check this out in order to start the journey of controlling your top most budgeted expenses.
Which are your top most budgeted expenses?