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Budget Planning and Management in Singapore

Posted in Budget Planning and Management in Singapore by Administrator on the October 30th, 2008

Why Budget

Keeping Track:

* There is only so much money from month-to-month. Question: where does it all go?
* A sizeable portion pays for housing, food and basic living. Another portion pays for transportation. But where does the rest go?
* Budgeting allows you to track your monthly expenditures so that you can plan key savings strategies for important short-and long-term goals.

Limits Your Spending:

* Having a financial budget may find that about 5-10% of your total spending may be for purchases that are not needed.
* Think about it. What could you do with that extra 5-10%? Perhaps your future plans include buying your first home, going back to school, saving for your child’s education, paying down debt or simply setting aside cash for a special trip.
* A budget will identify expenses that can be cut so that you can set goals on making important long-term savings.

Discipline Yourself:

* your goal is to rid yourself of instant gratification (the symptom of credit card use). The budget sets guidelines on what and when items can be purchased.

Setting Goals:

* Budgeting supports your financial goals, which may include:

— saving for your first home
— paying down debt
— preparing to go back to school
— planning for retirement

Good budgeting skills add these goals into the budget.

Prepare for Emergencies:

* Question: if you were to lose your job, how long could you survive on available funds?
* If you had to stretch those funds, what reductions can you make in your existing monthly expenses?
* That is the key benefit of a budget. It helps prepare for emergencies with established expense reduction plans.