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# THE RICHEST MAN IN BABYLON TAKE AWAYS {5/40}
- URL: https://www.thedraftledger.com/the-richest-man-in-babylon-take-aways-4-40-3/
- Published: 2026-09-01T21:00:20.000Z
- Updated: 2026-09-05T19:02:49.000Z
- Author: The stash

Budget Your Expenses

To get to a goal you need a vehicle to help you. To regulate your spending your vehicle must contain a budget. Now I know what you're thinking, why does it matter? It does nothing.

Arkad, the richest man, explains what budgeting really does and advises how best to go about knowing your budget. First, he says, control your expenditure. To budget effectively, you need to find where your leaks are, and you cannot identify them with the faucet on full blast, so limit it for a time to allow yourself the chance to identify and patch them. Budget your necessities, there's a clear distinction between what's classified as a necessity, an investment, and a worthwhile want (not wants that aren't worth it).

A necessity is something you spend money on that allows you a basic, decent quality of life, bills, rent for shelter, utilities to power the shelter and give you light, water to keep clean, gas and electricity to cook and power your shelter.

An investment is simple.something that will make your money work and the earnings work once produced ,indefinitely.if it does not fall in the category of making you money, it doesn't count.an addition to this is self investment this is anything that will progress your attributes in different ways.keep this to a minimum in the beginning up to two a month.

A worthwhile want is something you buy that has reusable value, or can be repurposed. In the beginning, it's important to keep things simple, black and white, remove the nuances to start, then add them back later once you've developed healthier habits and a better understanding of your spending patterns.

.rootx1\*

Seeing the figures in front of you makes you more conscious than keeping it in your head. When it's out of sight, it's out of mind, so see everything, the bad, the good, because they're in your head, you can justify it countless times. personally I stand by a budget as one of the ways I became debt free, because it allowed me to see my leaks clearly and formulate a financial plan that I was comfortable with to attack my debt.

The Working

Budgeting doesn't need to be complicated .who wouldn't love to have more money to enjoy, guilt free. I always felt like I'm spending and putting myself in a worse position, but now I know my limits, and that felt more empowering than restrictive.

I opted to learn to build a budget from scratch, to properly understand my own spending habits. What I learnt, I'll teach you :

The Template

1. Know the numbers. Find everything to do with the money you make, your income monthly, your pension, your NI, tax, student finance, anything touching your money moving. Be in the know, understand the code of your finances ,the more in depth the better.
2. Note down the numbers and totals. Looking at your banking apps can help, go transaction by transaction, figuring out how much you spend in total. This gives you accuracy, knowing your numbers and reconciling them, so you know the number that went in is exactly what came out.the aim is to see what your expenditure does throughout the month, especial at the point of low funds.
3. Educate yourself on budgeting do's and don'ts. There are creators who break down what works for them and what doesn't, take that information in, and pick out what's applicable to you.I will do a segment on the budgeting do's and d0n'ts at later date.
4. Build yourself a budget. Categorise everything and lay it out so you can see it. Keep it strict, especially at this stage, on what is and isn't accounted for. Once the numbers are in, you have an accurate budget.its important to be very strict to the penny at this stage because we tend to round and forget but there is power in a penny as much as a pound.
5. Keep it simple, and stick to it. A budget won't change your situation overnight, it changes it over time. Stick to it week in, week out, and it pays off, literally.its hard to deny yourself the luxury of spending freedom after a long month of working but spending free can equal operation fund jail and that isn't a place you want to be.

\[if you're looking to budget and want to have a simple but effective budget with an accompanying guide and talks on the how I managed myself and my finances it can be yours for £15 

link to purchase:

[https://stasharchive.etsy.com/uk/listing/4565245063/article-001-the-budget-bundle](https://stasharchive.etsy.com/uk/listing/4565245063/article-001-the-budget-bundle?ref=thedraftledger.com)\]

Entry 005 ID No. 6.15.14.20.5 /19 © The Draft Ledger