Budget Segmentation for Steady Financial Growth

In order to stay relevant and actively involved in the economy, we kind of all need a little leg up. We normally get that support from our parents as they take us through formal schooling and perhaps even fund our further education so that we can finally get qualified to perhaps enter the job market. Some younger parents or those with minds that are a little bit more open may even fund your business venture, but either way, one’s parents are often the primary source of the much-needed aid to actively participate in the economy.


Beyond the financial support of one’s parents however, the working world has some systems in place to help new entrants into the economy find their feet, such as the agreement between property landlords and companies to perhaps let new employees lodge without paying rent upfront for the first month or so. Once you’ve settled in to your job, career or whatever else it is you do to earn your income, it takes a little while to reach a stage when you can start looking at your finances more closely with the aim of handling your financial affairs a little more effectively.

Many people go through their entire lives without ever drawing up a budget, let alone sticking to one and thus missing out on the sheer power offered by budget segmentation as a means through which to facilitate steady financial growth.

Segmenting your budget simply entails creating different versions of it from the different view-points as dictated to by your differing financial needs. So you’d for instance create a budget from the point of view of the costs associated with getting to work and back, which would include elements such fuel costs, taxes, etc. Then you’d create another budget which focuses on the costs associated with another aspect of your life, like entertainment, basic living expenses, etc.

The amalgamation of these segmented budgets will then without fail reveal some areas in which each of these segments overlap, making for the perfect converging points for saving a lot of money in unnecessary banking fees, other financial charges and just perhaps catering to many of your spending needs through a reduced number of actions. Some of the biggest savings will come through simple actions like perhaps stopping on the way from work to do your periodic grocery shopping instead of having to jump in your car and drive into town again over the weekend, while others just require you to perhaps consolidate some of the financial services which you pay for.

If these actions are repeated over time and the residual money you were otherwise clearly wasting all along doesn’t get spent straight away, you will realise some steady financial growth and perhaps even have a good stockpile of money to explore some investment avenues with.

It’s true — a good portion of the money you spend each month fits quite snugly into the ‘unnecessary expenditure’ box, a box which was perhaps intentionally created by some financial services providers with the way in which they’ve structured their offered financial services.