Sharp Daily
No Result
View All Result
Friday, July 11, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

Why budgeting is the secret to building wealth through investment

Sheilla Musau by Sheilla Musau
December 17, 2024
in Investments
Reading Time: 2 mins read

If you’re serious about building wealth, budgeting should be your first priority. While many people view budgeting as a restrictive practice meant to limit spending, it is actually the key to unlocking your ability to invest and build lasting wealth. The idea of “paying yourself first,” highlighted in The Richest Man in Babylon, teaches us that before spending on bills or lifestyle, you should set aside a portion of your income for savings and investments. This simple yet powerful habit is the cornerstone of financial success.

One of the main reasons budgeting is crucial is that it helps you identify areas where you can save money. By actively tracking expenses, you gain awareness of where your money is going and where you can cut back. The 50/30/20 rule is an effective approach here, allocating 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. This discipline frees up funds for investment, ensuring you have resources for wealth-building opportunities like stocks or real estate. Budgeting and the 50/30/20 rule work together to prioritize savings, allowing consistent progress toward financial goals.

Many people believe that investing is only for those with large disposable incomes, but this is a myth. The truth is, anyone can start investing as long as they can budget properly. By limiting unnecessary expenses and putting aside a fixed percentage of your income, you can begin building a portfolio regardless of your income level. It’s not about how much you make, it’s about how much you save and invest. By starting small, but doing so consistently, you can begin to see your wealth grow over time.

Moreover, budgeting allows you to prioritize your financial goals. When you have a clear view of your income and expenses, you can make intentional decisions about where to allocate your resources. Budgeting is a proactive way of ensuring that you’re always moving closer to financial independence, and it prevents you from making impulsive spending decisions that can derail your investment plans.

RELATEDPOSTS

Kenya considers social media feedback in national budget process

April 9, 2025

In the end, budgeting is much more than just tracking expenses. It’s a strategy for building a strong foundation of capital that will support your investment journey. By committing to a well-structured budget, you set yourself on the path to financial freedom, one step at a time.

Previous Post

Staying wealthy: Insights and practices for long-term financial stability

Next Post

Role of behavioral finance in decision making

Sheilla Musau

Sheilla Musau

Related Posts

Analysis

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025
Analysis

Lessons from the Kuramo-TransCentury fallout

July 3, 2025
Analysis

Kenya’s CIS market: Q1′ 2025 shows a surge, setting the stage for future expansion.

June 26, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
Analysis

Your First Investment should be an emergency fund with Cytonn Money Market Fund

June 16, 2025
Investments

Contrarian investing in Kenya.

June 13, 2025

LATEST STORIES

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Business and Finance Concept - Coin, Currency, Financial Item, Graph,

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025

How Kenya is future-proofing its economy against illicit finance

July 9, 2025

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025

Del Monte foods files for bankruptcy in USA

July 3, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024