What is a budget?

What is a budget?

Although its name alludes to something complex, budgeting is just a way of planning and organizing your money. In its simplest form, it is a means of recording the money that comes into your possession (income) and the money you spend (expenses). In fact, this recording can be done in any way that suits you: with paper and pencil, on an excel sheet, an app and of course through the woli app. 

Entering this process will help you in many ways. The main thing is that you will gain control of your money and you will be able to start making plans on how to make the best use of it.

Let’s take a simple example. A teenager does not record his income but spends all his money every day on what seems important to him at that moment. This way he will hardly be able to save any money for an emergency and will lose his sense of the value of money. On the contrary, if you learn to monitor and record your income and expenses, you will slowly begin to realize the value of products and services, as well as parts of yourself. For example, you can observe where you spend the most (clothes, books, trips or gifts), understand if your purchases are mostly about you or others and think about what this might reflect on you and the image you project to others.

A budget only makes sense if it is done at regular intervals and typically before revenue comes in (e.g. before the day your pocket money arrives at Woli, or for employees before the day of payroll). Our income determines the amount we have at our disposal to consume. So, we need consistency and continuity. If you budget every month, which is the most common, you will notice that over time you will manage to have money for the things you need. When you reach adulthood you will already master a tool that will help you live comfortably and protect yourself from debt. 

If you’ve tried budgeting before but abandoned it, now is the time to try again! It may seem a bit difficult at first, but once you manage to do so, you will discover the benefits yourself. After all, Woli will make your budget look like a simple and fun game!