Budgeting isn't as straightforward as it seems

[Asiska02]

As a smart and responsible person, you will never want to put yourself in a situation that will make you feel uncomfortable when you know you could have easily avoided it through how you spend from your income monthly. As responsible humans, we have this mindset and our brain already programmed to only spend as much as we earn.

You may have had an increase in pay but maybe you won’t see any change in yourself, this is because you already adjusted and living on that new salary even when you’re yet think and plan on how to spend it. Don’t budget above your means, but rather below your means. That’s the best way for you to go about budgeting, it can never be straightforward because unexpected expenses will come too that will override some normal expenses you’re use to monthly.

[fredericktaylor]

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

Income is definitely an important factor in determining the budgeting, income is the main part of creating a budgeting. We need to keep track of where and how much we are spending our money, but we need to spend it keeping in mind how much we have income so that we can save at the end of the month and not spend extra money. Most people spend without keeping track of their income, which results in most of their income being spent before the end of the month, as a result of which they cannot manage their expenses at the end of the month. Those who create a budgeting by keeping track of both income and expenses and can reduce necessary expenses can save for the future.

[Cgrexp]

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

Income is definitely an important factor in determining the budgeting, income is the main part of creating a budgeting. We need to keep track of where and how much we are spending our money, but we need to spend it keeping in mind how much we have income so that we can save at the end of the month and not spend extra money. Most people spend without keeping track of their income, which results in most of their income being spent before the end of the month, as a result of which they cannot manage their expenses at the end of the month. Those who create a budgeting by keeping track of both income and expenses and can reduce necessary expenses can save for the future.

Financial stability does not only depend on earning more. It also depends to a large extent on the ability to manage the earned income properly. Many people, despite earning a good income, cannot save enough money at the end of the month. If they spend more than their income, then no matter how much their income increases, it becomes difficult to ensure financial security. The purpose of creating a budget is not only to reduce expenses but also to ensure proper use of money. So that it does not become an obstacle in the way of fulfilling necessary obligations and achieving future financial goals. The budget should be in line with the actual income, family responsibilities and living situation of the person. Creating an unrealistic budget makes it difficult to follow it for a long time. The budget is not a one-time calculation. It is an ongoing financial process. If income, responsibilities or personal circumstances change the budget must also be revised as needed. The main basis of financial success is not only earning more. Spending your income wisely and building regular savings for the future.

[Fortify]

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

You're describing two separate things. You need a budget to understand your expenses, whether you can cover those expenses by having an income is another matter. Just because you lose your job doesn't make your budgeting worthless or obsolete, in actual fact as you described it help you understand where you could cut back and was essential for managing your unemployment. If you have outgoings you need to find a new form of incoming funds, which usually involves finding a new job. If you were sensible and living a frugal life as you say it's actually easier than people constantly in debt or overspending each month. There is a great danger with a growing income that you can start to spend more, that is the biggest problem people usually face but having a budget really allows you to visualize where everything is going. Lavish spenders tend to avoid these things.

[Rruchi man]

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

Many persons have not realized that earning more money does not automatically make them become rich individuals because your expenses can directly increase in proportion with your income if you do not have proper financial intelligence to manage what you are getting and ensure that you have enough for investment and savings and also enough to handle basic essential needs.

You can earn more, but still not be as rich as someone wo earns less. This realisation highlights the need for proper financial education.

[Cryptomultiplier]

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

Income is definitely an important factor in determining the budgeting, income is the main part of creating a budgeting. We need to keep track of where and how much we are spending our money, but we need to spend it keeping in mind how much we have income so that we can save at the end of the month and not spend extra money. Most people spend without keeping track of their income, which results in most of their income being spent before the end of the month, as a result of which they cannot manage their expenses at the end of the month. Those who create a budgeting by keeping track of both income and expenses and can reduce necessary expenses can save for the future.

Financial stability does not only depend on earning more. It also depends to a large extent on the ability to manage the earned income properly. Many people, despite earning a good income, cannot save enough money at the end of the month. If they spend more than their income, then no matter how much their income increases, it becomes difficult to ensure financial security. The purpose of creating a budget is not only to reduce expenses but also to ensure proper use of money. So that it does not become an obstacle in the way of fulfilling necessary obligations and achieving future financial goals. The budget should be in line with the actual income, family responsibilities and living situation of the person. Creating an unrealistic budget makes it difficult to follow it for a long time. The budget is not a one-time calculation. It is an ongoing financial process. If income, responsibilities or personal circumstances change the budget must also be revised as needed. The main basis of financial success is not only earning more. Spending your income wisely and building regular savings for the future.

Budgeting is good, mostly for salary earners who only earn once a month but for those who earn everyday or weekly, it is more of a chore of sort to always draw up and follow a budget when inflation keeps taking more than is earned.
‎Also, while it is true that as one's income increases, so also does their expenses, it is good to track expenses and try as much to live way below the expenses because this is the true importance of budgeting and it dictates ones financial trajectory.
‎It is this acceptance that makes one decide to find multiple sources of income or increase investment just to have more funds to spend and gives one an incredible resilience against volatility of income.
‎
‎

[Ever-young]

First i want to commend the strategic planning you applied to save up to 20% of the usual, i commend your financial discipline.

One chemistry we must understand is that as salary increases, responsibilities increase and economy goes worse day by day. Having the ability to adapt to circumstances makes us even wiser.

Budgeting we say, it’s a very easy something to do, where the terror comes is how to work with it, because the moment you make that budget, unforeseen circumstances smiles at you. But should we budget? Definitely. Now how do we navigate;
First there’s what we call miscellaneous, if it is not part of your budget, the tendency of failing or exceeding is very. This is where you fall back when you omit a need or when need arises.

Secondly, in the course of your saving plans, you should have emergency savings. I don’t think I need to explain this.
But in all, budgeting is necessary, we all have to step up our financial discipline to get it right.

[Judith87403]

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

I don't think i understand this, you mean that your income dictates your expenses? That means you will likely save less because each time your income increases, you will also have to increase your expenses as well. This is a very wrong mentality. If you have a budget that you wish to follow monthly, it should remain with the budgeted amount even if your income increases, and when it decreases you also have to cut your expenses so that it will enable you to still continue to save from it. I know that you may not keep up to your budget all the time due to fluctuations in your income especially when you don't earn a defined amount but you should try as much as possible to always live within your budget. You can even create a balance in your budget during months of increment and months of reduction.

[Unknown Op]

~~~~

Why?

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

You have made a valid point that budgeting is not about just tracking expenses but it is about understanding that how expenses are being managed and how much money is coming in. Sometimes when our income started increasing we become comfortable in spendings , we do not manage things without noticing the changes until income start dropping or some sort of unexpected problem rises. According to my point I think we should adjust our spending according to income that we can constantly afford rather than just changing our mind sets about what we can our afford in our best months. If we develop the habits of spending more during the best months and then have to take a step back when income decreases then it will become a problem. Also keep some money in savings for any sort of emergency , as it can happen at any time because doing job or getting benefit from investment is always not guarantee. Having a good budget help us to manage both good and difficult times equally. If our spending keeps on increasing then despite having good money is not going to guarantee financial security.

[Josefjix]

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

I agree with you on this, this statement corresponds to the statement that says 'More money means, more problems' . Human tends to increase lifestyle when income increases and reduces when source reduces too.

I managed 1000 Naira in a week four months ago when source dried out, I only ate in the afternoon once a day on a meal worth 200 Naira and I was okay with it.

The moment my income started flowing, lifestyle increases, where I eat 4,000 Naira everyday. It's crazy.

[MorganaX]

Personally I don't like budgeting when it comes to personal income but it's important when it comes to my business, I tried budgeting my personal income and that's when things started going south, the moment I started budgeting and keeping track of my expenses, I figured out that I started spending less than before but still no money, maybe it's because I live in a very unpredictable environment but I don't think it's for me or I haven't learnt it enough.

[Felicity_Tide]

Why?

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

This is very true. It's quite a common belief that people can set a budget for themselves and stick to it even after an increase in their earnings. Maintaining a consistent budget is never as simple as it sounds especially when it somehow puts the person in a state of discomfort. Although, some people have what it takes to manage and navigate their way, but I honestly doubt how long they can maintain that lifestyle, especially when there's an increase in how much they earn. At the end of the day, it's all about trying to make more money, and also living within your means.

[Maslate]

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

Most likely, the bigger income you have, the amount of expenses will also increase. Because you set your standards of living based on how much you can earn. But if you have low and limited income, you will do your best to adjust your expenses and spend as little as you can do enough for your basic needs, and totally ignore those wants.

And budgeting is the only way where you can track your expenses and earnings. But a lot of people just ignore budgeting especially if they are living paycheck to paycheck.

[noorman0]

-snip-
It turns out that our income dictates our expenses.

Your income dictates how well you manage your expenses, yet you still have access to various financial sources that allow you to spend more than you earn each month. I have witnessed so many stories of people around me who have become dependent on loans to sustain an unsustainable lifestyle, taking out new loans simply to cover old ones.

[Versatile_choice]

If we can use our money properly, then we will get a proper account of our money, like how much money we are earning and how much money we are spending. If we can keep this account properly, then we will never feel deprived. People feel deprived and live in hardship only because they do not use their income properly. If every person like you can keep a proper account of their income and expenditure, then I think their unnecessary expenses will reduce. Whenever a person reduces his unnecessary expenses, then he will be able to save for his future.

This issue about not spending our money properly is the reason why we need to make Budget before the money comes in, because if you don't have or set a budget definitely you may not know what to use the money to do when it comes and sometimes you might end up spending it unnecessarily due to the fact that you don't have something in mind that you will like to use the money to do.

But when you set a budget as soon as the money comes you will just spend them in that thing you budget for. It is just like when you're investing without a target you can easily get carried away by every little opportunity that the market present to you, but once you have target no matter the situation you find yourself into you will not sell your holdings not until you get to your target so it's just similar thing with making budget it will enable you concentrate and also save you from making wrong decision.

[Questat]

I think that's actually the very goal of budgeting, seeing not just how much you earn or spend, but realizing that some things are not just worth spending because they aren't a necessity but a total waste of money.

The thing is, having an income is necessary. Of course you will have nothing to spend if you got no money. But what we fail to realized is that not all money should be spend, not all necessities should be met just because you have sufficient amount of funds. And that's where budgeting should enter, to guide us on how to spend it wisely, and whether we have to spend all of it or save some of it.

[Crypto_Timothy]

Your income dictates alot of things really because if you are earning big, they way you will spend will not be the same as when you are earning less.
I did this savings tip some months back and it was very clear to me that I was just spending based on what I was getting and I could live off even on less, if I could trick myself to or rather restrict myself from my full income. So if I was getting 100k monthly, I had to tell myself that 70k was what I was earning actually and when I'm budgeting, that 70k is what I plan the month with and I make sure that other 30k either immediately I receive my income I lock the 30k or I just plan and completely ignore it but definitely your income determines how you spend for real

[sunsilk]

So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

Well, this is true that not because someone has been earning well with their salaries they won't need to track their expenses.

This formula might not work for everyone but savings to be out first from the salary must be done. It can be 5% of the total salary and that's for paying yourself.

You can do whatever you can with it or be it as a savings or for investing. But due to the inflation, this can't be applied to everyone and the source of income needs to be increased.

So finding another source of income can solve these discrepancies that we're having. Sounds easy but it's hard to do it but we'll get used to it.

[Smartvirus]

I divided it into categories: public transportation, health, groceries, household items, taxis, cat, other expenses, entertainment, rent, and clothing.

It turns out that our income dictates our expenses.  I realized that because I was earning well each month, I was indulging in more without really noticing it.
So, when you're budgeting, always look at both sides: how much you spend and how much you earn. The latter figure has a much greater impact than most people realize.

That’s a lot of categories to consider.

How about you just have fewer categories like: Savings, Emergency, Expenses and Investment.
That’s a much more better category from all that you’ve got lined up. You’ve just got to be disciplined enough to not take money from either category to be used for another.

You would find that, you would have all those categories you earlier stipulated catered for and it would take your earnings into consideration too.

[lombok]

That’s a lot of categories to consider.

How about you just have fewer categories like: Savings, Emergency, Expenses and Investment.
That’s a much more better category from all that you’ve got lined up. You’ve just got to be disciplined enough to not take money from either category to be used for another.

You would find that, you would have all those categories you earlier stipulated catered for and it would take your earnings into consideration too.

This is indeed the creation of the four budget categories will help to simplify the allocation of resources without the complications that come with excessive breaking down of expense variables. Money flows smoothly into funds that are meant for emergencies, basic requirements, savings and development of a solid capital base.

Sustaining balance in each area without changing the budget is one of the most important elements of success in the use of this basic system of money management. All the expenditures are assured to be handled with balance in accordance with realistic income capacity without the troubles of technical accounting.