TIPS ON CREATING A PERFECT MONTHLY BUDGET

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Without proper planning, it is hard to make real progress. To achieve success in life, one needs to plan out every single move. It is easier to stay off track when you do not know which path to follow; similarly, people tend to overspend every single month because they do not follow a concrete budget. Budgeting does not equate restrictions on pleasure; on the contrary, a well-crafted budget allows one to enjoy luxury and other benefits.

A budget is always pre-planned, so take time to draft the same well in advance.

Planning:

  • Yearly: take time and plan your half-yearly, and yearly budget planning in the month of December. You do not need to fully flesh-out the plans as you certainly will not be able to predict the future. But it is useful to have a framework of notable financial events marked out. 
  • Monthly: plan monthly goals at the start of every month. This chart, however, needs to be detailed. Note down every single possible expense and earning-amount. At the end of the month, examine the difference between your pre-planned budget and the expenditure.

Income Sources:

Many people have multiple sources of income or may get multiple paychecks per month that constitute their salary. Some Track all these sources and add the money to create your monthly fund. There are user-friendly smart apps that you can easily install on your phones to keep a detailed summary of your income. These applications are best suited for freelance workers and artists who live on multiple paychecks and have to balance their finances.

Rent, groceries, electricity, and other bills are part of your fixed monthly expenditure. Keep your health, car and house insurance updated. Generate an automated e-system to pay bills from your account at the start of a month. This process will not only save time but will also help you see a clearer view of your money to manage personal finance plan.

Fixed Expenses:

Money Goals:

A part of planning a successful budget is to chalk out month saving goals as well.

  • Try saving at least ten per cent of your monthly income in a fixed saving account. This money will act as a safety blanket and emergency fund. 
  • With the knowledge of the market, everyone can invest money in the share market to gain higher returns. If you do not want to entertain the risk factors, invest in mutual funds or gold funds which are comparatively safer investments. 

Cut Down on Excessive Expenses:

There are various ways one may reduce personal spending.

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