Budget is fundamentally just a plan for your money. Be it an annual budget or a monthly budget. Sadly, this word has got a bad blow to its being. You are spending on what you need or what your purpose is, that’s budgeting. But people view it as some kind of cuffs which will keep them from spending on what they want.
A budget doesn’t limit your freedom. It gives you a reality check on the money you need to spend in a month. You will absolutely know what your expenses would be like in this month. That’s the freedom you are going to get.
It’s all about being intentional with where your money goes.
How does it help?
A budget will give you a plan of action and a reality check on where your money is being spent each month. It will help achieve your goals whether that’s for your wedding, honeymoon, or retirement.
When you plan a budget as simple as spending your money intentionally, believe me, you will actually find more freedom.
Because you have budgeted everything for yourself and know what you are going to be spending on so you will not feel guilty. And once done properly, within some months you will actually save more than what you initially did.
Budgeting tips for your daily life
1) Make a zero-based budget
This doesn’t mean zero money in your bank account. It means giving each rupee a name. For eg. Give a name like “Saving” to the money you wish to keep aside every month just to save for absolutely nothing.
2) Not every month will be the same
What I mean by this is in some months you will have to budget for things like Car service or an expensive wedding gift.
Other months you will be saving for future travel or birthdays. Regardless of what the occasion is, make sure you have considering money for your necessities. These festivals can be some kind of a Bermuda triangle that will not let you out from splurging a bit but you ought to make sure you don’t fall for it. Be flexibly-sure enough to adjust your budget for every coming month.
3) Always start with the important category
It’s the rule of life and the 1st rule of budget i.e., always have enough and keep aside for your necessities like food, water, shelter, and clothing. Once these necessities are taken care of, you can then focus on other categories and allot your budget accordingly.
4) Clear your debts
This is a dangerous hole you do not want to be into. Get rid of all your debts as soon as possible. Your birthday next month? Spare yourself from self-gifting and assign more of your budget towards paying off debts.
5) Don’t hesitate to trim your budget a little
When you are in that phase when you are a little tight right now, things aren’t going your way then it’s time to save money quickly. You can achieve this by dining out less, shopping a little less than usual. Don’t worry. This is just a temporary patch you will be going through.
6) Try a budgeting software
If pen and paper aren’t your things, it’s time to finally be a part of the software advancements of the 21st century and use a budgeting tool like Fundz. You can easily budget with just the tip of your fingers. Extremely user friendly with personalized recommendations from financial experts to improve your savings by 30%.
7) Create a buffer
Always keep aside a small amount of money for unplanned or unexpected expenses throughout the month. You can keep it as a Miscellaneous category in your monthly budget. The most important thing is to track the expenses that especially occur in this category. It will help you analyze better and give you a gist on what your next monthly budget would be like.
8) Track your progress
It becomes extremely important to keep a check on your progress from time to time. This will help you plan your budget better the next time you are using “Fundz”. Have a look at all your historical expenses which will give you a better idea of how far you’ve come.
Tags: Fintech Travel
