Building financial stability is probably one of the hardest things to do, especially on how to get started or which step to take. But before we get into serious business, let me tell you a story of the three little pigs.
Three little pigs named Lenny, Louis and Leonard decided to build their homes based on what material they thought was right, efficient and safe
- Lenny built his house with savings
- Louis built his house with investing
- Leo built his house with budgeting
After they were done, the big bad wolf came and blew the houses of Savings and Investing away because they didn’t have the right materials to keep their homes standing after the Wolf’s huffs and puffs
The three little pigs built their homes on what they felt was easier, less tasking and foundational. The first built his home with savings, the second with investing and the third with budgeting. It was easier for the big bad wolf the blow the first and second homes because they both lacked proper foundation.
What is budgeting?
It is simply balancing your expenses with your income. You budget when you discover that you are losing money faster than you get it.
Budgeting helps you keep track of your finances and how much debt you might be in. Parkinson’s law states that expenses will always rise to meet income, so you must consciously fight it- Sam Adeyemi (Parable of the dollars). In order to build your financial foundation you have to build proper budgeting skills before you hone your saving and investing ability. It helps hone your financial skills
- Helps you foster a better financial future
- Helps you set realistic financial and saving goals
- Helps you prepare for emergencies
- Helps you address bad spending habits
