208 National Financial Literacy Month Day #2 Budgeting Assists In Navigating Inflation

<p>Welcome to the month of April, National Financial Literacy Month and throughout this month I will be producing podcasts to assist listeners in better understanding the importance of being financially literate. This is not all, budgeting can help you offset the inflationary cycle we are in.</p><p>Here is what budgeting is all about and the assumption that everyone knows what budgeting is all about is not true. Here are just a few things to consider as you budget your money and work to navigate inflation.</p><p><strong>What is a budget?</strong></p><p>A finance plan that allocates future personal income toward expenses, savings, and debt repayment</p><p><strong>Benefits of Budgeting:</strong></p><p>•Gives you control over your money</p><p>•Keeps you focused on your financial goals</p><p>•Helps you stay aware of where your money goes</p><p>•Helps you save for expected and unexpected costs</p><p>•Clarifies areas where you can save money</p><p><strong>Three main components of a budget:</strong></p><p>Income</p><p>Expenses</p><p>Savings</p><p><strong>Where to start developing a budget</strong></p><p>•Understand your money and how you spend it</p><p>•Make tough decisions about spending priorities</p><p>•Budget with a lifestyle in mind</p><p>•Build a budget that allows you to save</p><p><strong>Budgeting with a lifestyle in mind</strong></p><p>Clarify the life aspects you give priority, and then split them into 3 areas:</p><p>•Items that create meaning and bring you joy</p><p>•Things you want, but that can wait</p><p>•Things you would like to have, but aren’t essential</p><p><strong>Things to remember about budgeting</strong></p><p>•Make sure your list reflects your priorities</p><p>•You can always adjust your goals as your priorities change</p><p>•Budgeting takes time, patience, and effort</p><p>•If your first attempts don’t go as planned, don’t give up</p><p>•Look for ways to make tracking spending easier – like mobile apps</p><p><strong>What happens if you don't budget</strong></p><p>•Overspending</p><p>•Falling in