Conquer Your Finances with the 1st Financial Commandment: Create Thy Budget and Stick With It!

Welcome back to Preggy to Mommy, where we're passionate about supporting you on your journey to financial independence and beyond.

Today, we're introducing the first of our 10 Financial Commandments: "Create thy Budget and Stick with It."

A budget is a plan for your money. It's a tool that lets you see where every dollar/peso is going, and more importantly, where you want those dollar/pesos to go. Without a budget, you might find yourself in the precarious position of financial instability. Planning your budget is planning for success.

There are two main components to consider when budgeting: fixed expenses and variable expenses.

Fixed Expenses

Fixed expenses are those bills that don't vary much from month to month, such as your rent, internet, and utilities. These expenses are mandatory and typically consume a significant portion of your income.

Variable Expenses

Variable expenses, on the other hand, are costs that can change from month to month. These include groceries, entertainment, clothing, and others.

The Power of the Gap

The key to successful budgeting is understanding your income and expenses, and the gap between them. The greater the gap between your income and expenses (in your favor), the stronger your financial health. A larger gap means you have more resources to allocate towards savings, investments, or debt repayment - bringing you one step closer to the second commandment.

To help you in your budgeting journey, I would like to share a few budgeting apps that I personally recommend: