When you have multiple bank accounts, credit cards, and bank notes stashed in wallets and bags, tracking where your money goes can quickly feel like a full-time job.

But you need to make sure you have enough money to meet your financial commitments or pursue certain goals. Not tracking your spending is also risky for your financial security. Case in point: One of my readers recently lost over S$4,000 when her credit card was compromised.

One thing is certain: If you hope to achieve financial freedomyou need to learn how to budget well and stick to it.

BUDGETING IS A KEY LIFE SKILL

In a book intended to help him prepare for elementary school, my son wrote: “I am going to learn to spend money.”

I laughed and gently told him that no one needed to learn how to “spend” money – instead they needed to learn how to budget.

Most of us probably first encountered this problem in elementary school. Think about when your parents gave you pocket money every week. How long did it take you to discover that if you spent everything on snacks or toys on Monday, you would be hungry for the rest of the week?

These early experiences taught us how to prioritize, plan, and save for the things we really wanted (in my case, my favorite story books).

As adults, budgeting isn’t that different – ​​but the “B” word doesn’t always have a positive connotation.

Many seem to think it’s about being greedy or giving up things we love. We hesitate at the thought of cutting out our favorite foods or saying no to fun weekend outings with friends.

But budgeting isn’t about depriving yourself. It’s simply about having a plan and making conscious decisions about our money and what matters most to us.