To most, the term “budget” tells the time of the year (May/June to be exact) for politics but for most it conjures more images of scrapping shopping together with an artillery of coins at your disposal- oh, and eating mi goreng for the sixth night in the row.
Budgeting is not merely about putting another five cents in the jar and putting water in your shampoo so it has been used dry, it is also a system whereby money is made from compounding.
Compounding is a process where the money you presently have is put together to make more (sort of real world Midas effect for the 21st century).
The budget savvy say that to make money, and to gain in order to reap the benefits of scrubing all those coins together is to separate you money into three parts; Save, Spend and Make.
Save is the simple one- putting money away to reach a goal, or to use when the car breaks down.
Spend is a little harder; it is used for both the necessities (food etc) and the luxuries... dividing this part of the dosh is where the comprimises shall begin.
The third and final aspect is compunding- now, this part is really u to ones discretion on ho they want to pmake money with the money that they put aside (it could be ebay etc.)
I’d love to hear your thoughts of budgeting, sound off below!
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