The Value of Budgeting & Everything you Need to Know

Assalamualaikum Warahmatullahi Wabarakatuh

If you’ve heard it once, you’ve heard it a Million times: MAKE A BUDGET!Money experts & financial planners, have been reinforcing this idea for years. Budgeting is the key that opens the door to financial freedom, and is the only way one can achieve financial security, so it cannot be preached enough. Now if you are new to the world of budgeting and not sure where to start The Halal Investors have you covered. Your search across the internet has just ended because we’ve put together everything you need to know about budgeting in one place. We also have a very interactive and easy to use budget spreadsheet that has helped changed the lives for those who have begun to use it. So Make sure to finish this blog post and join our email list to get free axcess this Budget spreadsheet. 

Our hope is that you’ll see the budget for what it truly is: an easy approach to total life-change!

Why Budget?

As stated in the intro budgeting is the first step on the road to achieving financial freedom & it is the one thing you should never be too busy to do. If you look around budgets are used everywhere, for example governments use a budget to determine how they should spend their revenues and expenses, companies use a budget to plan their financial outlook for the year,and smart individuals use a budget to plan for their own personal expenses. Budgeting lays the foundation for your personal finances. Without a budget you’re making blind decisions with your money with zero plan for the future.  The value of a budget ensures that you have enough money for the things in life that mean the most to you, it helps keep you out of debt & keeps you prepared for life’s unexpected turns. The benefits of having a budget are endless, so keep reading to find out how you can get on to the right path and have a budget of your own.

“And give the relative his right, and [also] the poor and the traveler, and do not spend wastefully. Indeed, the wasteful are brothers of the devils, and ever has Satan been to his Lord ungrateful.” (Quran 17:26-27)

What is a budget? 

If you are new to the world of budgeting the first question you may ask is what is a budget? A budget in as simple terms as possible is a plan for your money. That is all great in theory but what about practicality?

 In this blog, we will show you how to do a real budget with real numbers that goes beyond the philosophy and involves real-life application. In practical terms, budget means sitting down every single month to determine your income; what amount of money is coming in and when is it coming in; and taking a look at every single expense from your rent or your mortgage all the way down to your daily trip through the drive-through for that morning cup of coffee. You need to know how much your expenses are and when those expenses need to be paid.

So, let’s not just talk about it and let me show you how it is done.

When you grow up without money like I did, it’s not a thing to love. Rather, it’s a thing you never ever have enough of — a constant source of stress and frustration. I thought you were supposed to hate money and the relentless pursuit of it. I didn’t know you could find joy in it.

A personal or household budget is an itemized list of expected income and expenses that helps you to plan for how your money will be spent or saved, as well as track your actual spending habits. The word budget may have taken on a slightly negative connotation over the years, invoking an image of pinching pennies or limited spending.

Where to start? 

Now that you know what a budget is and why it is important you’re probably wondering how can I start a budget? If that’s the case we have attached our budget spreadsheet in the blog post. We also have a detailed video explaining how to use the budget spreadsheet and make the most of it. 

If you want, you can also make your own budget spreadsheet on excel or google docs.  Their are also self automated budgeting apps like Mint that really automate the whole budgeting process.