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Cameroon: Budgeting - An Imperative
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Cameroon Tribune (Yaoundé)
27 March 2008
Posted to the web 27 March 2008
Brenda Yufeh
Financial planning helps an individual know how to spend his money either for regular maintenance or unexpected repairs.
Home ownership is said to be expensive and unpredictable. One may never know when the children may fall sick, the pipes are going to burst or the roof will need repairs. That is why it is essential for homeowners to have some money put aside "for a rainy day." In order to save money consistently, economists say one needs to be able to live on a financial plan. For an organized budget of monthly expenses may include items such as income, food, house rents health care, utilities, transportation, miscellaneous, savings, etc.
The importance of budgeting cannot be over emphasised as it is usually vital to apply mathethmatics to real life situations, develop a realistic view of the cost of living, and differentiate between necessities and luxuries. When some one determines his monthly income and estimates his monthly expenses, he will be responsible for keeping track of money earned as well as money spent. Hence always ready to handle unexpended expenses. Dr Molem Sama, an economist says a budget is a detailed plan to make ones income cover expenses. It also provides the basis for finding ways to save money on a regular basis. Creating a budget is a key part of preparing for home ownership. If one does not already have a budget, it is probably time to start one. This is the best way to ensure that you are always in a position to pay essential bills.
Dr Molem Sama says if one has never lived on a budget, he may not have a clear idea of how one spends his money from month to month. People need to take a look at their spending patterns and to get started; one should keep a record of everything he spends for a four-week period. If one does not make a financial plan, there is no way of achieving financial freedom. Budgeting enables people to keep track of all their income from different sources and above all keep a track on expenses. "Once you manage to keep track of your expenses, you become aware of how much you are spending on unnecessary things", the economist underscored. Adding that budgeting and examining ones spending habits gives a pretty good idea of what is truly important to an individual.
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A housewife in Yaounde, Gwendoline Ndiomo, says when one decides to budget her expenses she will start controlling them. "You will desist from spending money uselessly and you will even pay your bills on time to avoid being slapped with a late fee penalty", Gwendoline added. Budgeting she says has helped her end up saving more money which she can now divert to different investment after a period of time.
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