E1. Lessons households and businesses can pick from government’s budgeting process.
If you don’t budget, you cannot monitor your incomes. If you don’t monitor. You cannot improve.
- Do you have too much money to spend without anyhow? Then why spend your way to poverty?
- Have a strategy, plan and a budget.
- A budget is simply a statement of expected incomes and expenditure over a period of time – a day, week, month, year – the shorter the more accurate.
- The government’s budgeting process is very elaborate. Involving all key stakeholders in planning for this country’s 35 million people. It is a highly consultative process, until the budget is approved.
- Businesses and families too need to budget.
- Involve your stakeholders.
- Have a fixed percentage of your income for savings. First pay yourself first e.g. 25% of your total income set aside as a saving.
-Who needs it/ why it is important
- You cannot improve if you do not monitor your incomes and expenses. A budget is a tool to help you monitor.
- Everyone needs a budget. It helps you know whether you are stagnating or growing.