Understanding the Basics of Budgeting
Budgeting is the cornerstone of financial success. In this article, we'll delve into the fundamentals of budgeting and how it can help millennials and Gen Zs in West Africa take control of their finances. Setting Financial Goals Before creating a budget, it's essential to identify your financial goals. Whether it's saving for a trip, paying off debt, or buying a car, having clear objectives will guide your budgeting process. Tracking Income and Expenses Start by tracking your income sources, including salaries, allowances, or side hustle earnings. Next, list all your expenses, such as rent, utilities, groceries, transportation, and entertainment. Be thorough and honest to get an accurate picture of your finances. Differentiating Between Needs and Wants Differentiate between essential expenses (needs) and non-essential ones (wants). Prioritize your needs and allocate funds accordingly. Cut back on unnecessary expenses to free up money for savings and investments. Based on y