EVERY country has its budget but many people and families don't. However, in order to control finance and save for the future, it is important for every person and family to have a budget. It is simple for any individual to draw up his/her family's budget and it would not require the assistance of professionals. With money being the most important thing for a person's survival, The Fiji Times takes a look into what a budget is and how you can draw up your family's budget in order to remain financially stable.
IT is something that is needed in every household but many may still not have it.
A budget, which is simply getting your finances in order, is a must for every family, so says the Consumer Council of Fiji.
Having one would simply mean a control over your money, where you would know how much you have and how much you spend.
Council chief executive officer Premila Kumar said there was a need for people and families to have a budget.
With "rainy days" also a part of human life, having a budget would help people keep a track of their expenses, she said.
"A budget will help a person to cut down on unnecessary spending," she said.
Mrs Kumar said society encouraged people to buy now and pay later but people have to see whether they would have money to buy now and pay later.
She said items were sometimes sold at $1 deposit and people went for these offers without analysing things and seeing their ability to pay.
"A budget is prepared by looking at all your family's income, the income generated by each member of the family.
"This income can be from rent, alimony, dividends, royalties, remittances and other things, apart from the normal wages.
"It's up to an individual whether you prepare your budget for a week, fortnightly or monthly."
Mrs Kumar said after adding their income, people should write down their expenses which could be for rent, bills, school fees, groceries and transport.
"As a prudent consumer, if you see that your expenses are more than your income, then you will cut down on expenses.
"You have to cut down on expenses if you have to increase your income and every household has to see what it can do to increase income.
"This can include cutting grass, baking, stitching clothes at home — you have to look at side income.
"If you don't increase income, then you will go to the moneylenders to get money for your priority needs."
Mrs Kumar said money obtained from moneylenders would have to be paid back to them, with interest, because it was not free money.