Achieving the utmost out of one’s money has been an ongoing issue ever since currency has been in circulation. No matter how much one has, if not well managed and wisely used, money eventually runs out.

A contrasting factor lies in having to make the best out of one’s income while acquiring the best deal for a decent way of life. However, the question lies with whether due to consumerism, we as a society are spending our money according to basic needs, or whether we are being distracted through the constant bombardment of ongoing changes and messages in our life that influence our choices on what is really essential versus products and services that go beyond our real needs.

Living within a consumers’ world, these past decades have seen an escalated increase in how most people spend large amounts of money on new gadgets, latest hi-tech products and services. In addition to this, societal pressures often create an impact on individuals towards acquiring the “perfect” image. This places one in a position towards wanting to achieve a goal that may be either farfetched or attained at a high price, most often resulting in financial and/or psychological problems. Within this scenario, the message driven home through media promotion is that in acquiring the latest commodities, one must rest assured that a decent and comfortable way of life can be attained.

This puts to mind the misguided concept that essentials in life are ever changing, hence sabotaging one in believing that s/he cannot do without all that is promoted on the market. This perception creates pressure both on one’s pocket and also on oneself in trying to make ends meet.

Wants versus needs

The concept of ‘wants’ versus ‘needs’ is mainly understood upon evaluation of one’s priorities. However, one tends to overlook priorities at times and tends to merge them within the ‘wants’ classification. In other words, priorities should highlight the list of basic human needs which include food, water, clothing and shelter. The ‘wants’ are the things that one is able to live without such as comforts and luxuries. These do not fall within the category of being vital or indispensable. Thus ‘wants’ can be put on hold for when the time is right for them to be obtained.

Are we living beyond our means?

This line of thought brings forth more questions: Are we living beyond our means? Do expenses incurred exceed our income? A simple calculation of what one’s yearly income is versus expenses made throughout the whole year solves that equation and gives out a clear answer. At this point, irrelevant of whether the answer is negative or positive, exploring the best strategic plan to achieve a balance that is congruent with one’s income and needs, would serve to encourage changes in one’s perception and lifestyle. By stabilising balance between income and expense, a clearer picture could be drawn whereas a sense of positive power is achieved through one’s control over management of one’s own finances.

Setting up a budget

Setting up a budget and abiding by it, does not appeal to most people. Most often this action is viewed as negative and unpleasant. Some see it as a sort of punishment, a restriction that limits them from living a full life in order to avoid generating debts. However, if one stops to reflect, setting up a budget plan is more of a positive aspect since it gives one the power to administer own funds in the best possible way. It is an excellent way to make a success out of one’s own finances.

The getting more out of your money agenda

The trick to getting more out of one’s money is primarily set on three ground rules:

• Attitude: understanding and evaluating one’s financial situation, taking a decisive stand towards committing oneself to change.

• Commitment: committing oneself to a plan of action and sticking to it.

• The Plan: creating a personalised budget plan that works for oneself by being drawn on ‘needs’ and being relevant to one’s income and expenditure.

The three month analysis

Primarily, the first step that draws one closer to setting a personalised budget plan is to create a three month analysis towards finding out how money is being spent. This means keeping detailed records of where money is going by simply having it written down and added up at the end of each month. It is amazing what one discovers when keeping this kind of budgetary record.

After the first month of keeping track, a good indication of where the money is going will be identified, thus adjustments and changes can be made during the course of the second month. Throughout the third month, one would be able to experiment with the changes incurred from the previous month and by the end of the three months one would be able to determine a permanent budget to follow.

A budget that works

Using the information gained during the course of the three month analysis one may establish a tailored budget plan. However, keeping track of all expenditures keeps one on the right track and reinforces accomplishment. Persistence is the key to success.

Great tips for better money management

• Focus on the full picture by calculating income versus expenditure and find a balance between the two

• Provide for the basics first, then the comforts, and finally the luxuries.

• Spend only according to your budget

• Never give in to temptations to depart from the budget

• Use cash instead of credit cards – this helps to limit spending on objects and services that are not within the budget plan

• Plan meals on seasonal food such as vegetables. This saves money whilst creating healthy meals

• Shopping on an empty stomach at the market could result in buying more than one has anticipated for

• Find time to prepare snacks instead of buying take away, it is much healthier and cheaper

• Money spent on cigarettes, gambling and alcohol intake could be put to optimal options such as investing in a savings scheme or by paying accumulated debts if any

• Being responsible is highly imperative since making bad choices on spending money can create unnecessary misery both on a personal level and within the family.

In conclusion, sticking to a personalised budget plan is a positive way that enables and maintains stability for oneself. Further to this, it serves as a self-empowerment initiative through the upkeep of commitment and self-discipline. Sticking to the plan also enables one to reach higher goals and diverse opportunities.

Recently B’Kara Community Services of Aġenzija Appoġġ and St. Theresa College coordinated the campaign Kampanja Flusi f’Idejja! with the support of Home Economics Centre and Drama Unit. This campaign consisted of four sessions addressing Year 6 students and their parents or guardians. The main aim was to create awareness on better budgeting, through skills provided to the family units. It provided a positive perspective by emphasising the importance of using the family income wisely based on giving priority to essential needs. This learning experience was provided through informal education and focused on the difference between ‘needs’ and ‘wants’, providing guidelines on efficient money management.

On a final note, managing one’s own finances guided by a tailored personalised plan promotes positivity and peace of mind.