Budgeting isn’t about being stingy. It’s about being smart

When you have multiple bank accounts, credit cards, and random cash bills stashed away in wallets and purses, keeping track of where your money is going can quickly feel like a full-time job.

But you need to make sure you have enough money to meet your financial commitments or pursue certain goals. Not tracking your expenses is also risky for your financial security. Case in point: I am a reader who recently lost more than S$4,000 when her credit card was compromised.

One thing is for sure: If you hope to achieve financial freedomYou need to learn the budget well and stick to it.

BUDGETING IS AN ESSENTIAL LIFE SKILL

“I will learn how to spend money,” my son wrote in a book intended to help him prepare for primary school.

I laughed and gently told him that no one needs to learn how to “spend” money, but instead should learn how to budget.

Most of us probably first encountered this in primary school. Think about the times when your parents gave you pocket money every week. How long did it take you to discover that if you spend all your money on snacks or toys on Monday, you’ll have to starve for the rest of the week?

These early experiences taught us to prioritize, plan, and save money for the things we really wanted (in my case, my favorite storybooks).

Budgeting as adults isn’t that different; however, the “B” word does not always carry a positive connotation.

Many people think it’s about being stingy or giving up things we enjoy. We resist the idea of ​​cutting out our favorite foods or saying no to fun weekend trips with friends.

But budgeting isn’t about depriving ourselves. It’s just a matter of having a plan and making conscious decisions about our money and the things that are most important to us.