Budgets for Budgeting Days

What is a budget?

In the United Kingdom a budget is an itemized statement that reflects the financial status of the U.K. for the coming fiscal year. It contains proposals for spending, for tax purposes, and is presented to the nation in a speech delivered by the Chancellor of the Exchequer. It compares to the State of The Nation speech by a U.S. President.

Another meaning of the word budget as found in the dictionary is: a plan specifying how the resources, especially money, will be allocated or spent during a particular period. It can also mean the total sum of money set aside or that will be needed for a specific purpose.

There are a few more definitions of the word budget and budgeting, but for the purpose of this article we’ll stick with those mentioned above.

Budgeting and having proper budgets can produce less stress. And the absence of stress leads to a healthier more pleasurable life.

Yet, there are hundreds of people in the world today who have never made a budget of any sort. To them the question of budgeting remains a situation of laissez faire; let the coin fall as it may. They prefer to let life’s event take their natural courses without personal intervention.

Whether one sits with pen and paper, or places a laptop on their legs, knowing where you stand financially is of utmost importance.  You need establish a budget in preparation for the rainy day.

The safest way to build a nest egg for the future or build an emergency fund is to establish a budget. Some say you need to set aside 3 months of cash for those unforeseen circumstances.

We spend money like there is no tomorrow

In Shakespeare’s Hamlet, old Polonius warns his hard-headed son Laertes about the pitfalls of borrowing and lending; in other words, the dangers of incurring debt. It is from this passage of literature that we find the quote “Neither a borrower nor lender be”. When you lend money to a friend you run the risk of losing both the friendship and the money.

In today’s world, our biggest cancer is not of the physical kind, but of finance – debt.

 Now, almost four hundred and fifty years later, we as a people have all but totally ignored the advice of Polonius. We continue to borrow money left, right, and center. We have become a nation of spend-thrift people. We spend money like there is no tomorrow. Millions of families have no savings for their children’s college fund; no savings for vacations; no savings for general upkeep; and no savings for retirement. The majority exist from one paycheck to the next.

How sad will it be for those who will reach age 90 and still find the need to fill out applications and submit resumes for employment?

With all the great medical advances present today, we continually add years to life, but not life to years. Some have even become cynical to the idea of frequent physical exercise. They rely on medication for their survival.

Maybe it is due to the quality of home entertainment that we have largely become a sedentary nation. The potency of television programming very much outweighs the desire to shed the extra pounds. There is no budgeting for weight loss. So we keep spreading at the hips and elsewhere.

The budget you act upon today could save a life. The life you save could be your own.