As the cost of living escalates, it can directly impact your approach to budgeting, because an increase in costs has a direct impact on income.
Therefore, we need to assess our expenses and determine how we can reduce expenditure on non-essential items.
Wants are things we don’t really need to survive - they are nice to have. And so we need to be prudent and disciplined about reducing expenditure on luxuries or non-essential items.
There are two types of expenses that must be considered when drawing up a budget and these include: