Household Budget: A Necessity

It is a simple habit to avoid over expenditure and focus more on the creation of wealth.

- Ashfaque Ismail

“Do not save what is left after spending; instead spend what is left after saving”

— Warren Buffett

The saying highlights the importance of prioritising savings for a better future. How can it be achieved? The answer is a rather simple one—Budgeting. If you sit down and start noting every penny spent throughout the day, you will notice a rather lengthy list of unnecessary expenditure. This is known as household budgeting where you jot down everyday expenses, allocate money accordingly and spend smartly.

Some financial experts consider household budget an ideal way to set finances in order, especially for youngsters living alone and newly-married couples. By jotting down the anticipated spending every month, you can moderate your expenses accordingly.