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Financial Literacy

The Fundamentals of Budgeting with Tayo Elnathan CPA, CMA

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Tayo Elnathan is the Executive Director of LCCMedia Foundation.

In addition to that, she is an accountant. Every month, she hosts a workshop on financial literacy. Her next workshop is on the 28th of August 2021 and it is focussed on financial literacy and the fundamentals of budgeting for kids ages 8-15. Adults are welcome to join. They might find some of the content helpful.

Register here for next workshop: https://forms.office.com/r/wiUmGMdr18

 

What is a budget?

A budget is a plan you create on how to spend your resources (time, money, relationships).  The budget helps you determine in advance how to use your resources.  The budget has the potential to make sure you never run out of resources. The key to budgeting is to FOLLOW THE PLAN. This presupposes you have a plan.

 

Why do you need a budget?

The Importance of creating and following a budget are as follows:

  • Let’s you know how to increase your earning capacity
  • Gives you control over your life and future
  • Prepares you for emergency
  • Helps you reduce waste and unnecessary spending
  • Relieves financial stress
  • Financial freedom
  • Retire in peace and plenty

See Tayo’s Power point here:

How to Budget?

Here are some steps to budgeting. There are no hard and fast rules. This is what Tayo Elnathan recommends. She encourages you to use a spread sheet. There are apps like Every Dollar – as well that can help you make plans around your money.

  • List your income – Calculate your monthly income or your revenues
  • The key here is to be honest with yourself – How much do you really have?

List your expenses – make a super detailed list of all your outgoing expenses

  • Bills, groceries, housing, utilities
  • Loans, childcare expenses, etc.

More Tips on How to Budget

  • Use the Physical method-tried and tested for ages
  • If you find using an excel worksheet difficult
  • Place cash for each budget category in an envelop or Ziploc bag
  • Use each envelop for each item
  • Don’t double spend – don’t spend your credit Card along with your cash
  • Don’t spend more than allocated.
  • Be disciplined

Finally, the decision to budget is a mindset one, here are some books that can help  with that.

  • The Richest man in Babylon – George S. Clason
  • The Power of Habits – Charles Duhigg
  • The Total Money Makeover – Dave Ramsey
  • Rich Dad Poor Dad – Robert Kiyosaki

 

Register here for next workshop: https://forms.office.com/r/wiUmGMdr18

 

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