Everyone would want to save for various types of financial goals. It could be travelling, saving for your wedding, saving for that home down payment, or for having financial independence at some point in your lives.
That said, you might shy away from preparing a budget. This is because you think budgeting is some kind of a dire or a restrictive plan that is going to that is going to tell you how to cut out all the fun in your life so that you can save for these goals. However, that is an absolutely wrong perception. As much as you would want to think that a budget is a scary thing, it is actually lot of fun and pretty useful. It allows you to see where your money is coming from every month and where it goes, allowing you to make the necessary adjustments.
One thing that you must drill into your mind is that budgeting is the financial foundation for helping you achieve all those different financial goals that you have set for your life. Thus, you have to learn budgeting your money in a way that it will help you in the long term.
To help you get a completely new perspective about budgeting, here are some useful tips that could help you manage your money like a boss:
Understand what a budget truly is
In simple words, budget is one of the oldest and the easiest ways that you could track your money in versus money out. It could be weekly, daily, or monthly. However, the crux is that it helps you understand your monthly income much better vis-à-vis where you spend your money. The best part is that it allows you to make timely adjustments on the way, especially if you do not like what you see. Therefore, by allowing yourself more time to track your money through a proper budget, you are giving yourself higher chances to save more money for achieving your future financial goals.
Analyse your monthly expenses to get a broader picture
Any person’s bank statement is one of the best indicators what he/she prefer to spend money on and about what they like. A budget helps you dig deeper into your expenses to analyse whether you are spending your money wisely and exactly where you want to spend. If you like spending on travelling since you feel it is an important part of your life, budget is the best way to know whether you are using your income wisely towards this goal. You could be spending a lot more on eat-outs, movies, credit card bills, parking tickets, or other controllable expenses that you should. Now that your budget has made you aware of this, you can make the necessary adjustments to save more for your travel goals.
Track every unit of money that you spend in your budget
Unless you track you money, you cannot save the way you want. If tracking every Rupee you spend means keeping a count of every cup of tea, coffee, or bottle of water you drink during the day, yes, you need to do it to achieve your financial objectives. Although it may sound tedious, more than half of the work of a budget is to sit down and review it and manually track where your money is going. This manual review of your transactions brings that all-important awareness to you need to manage your spending habits frugally.
Have weekly money days – your date with your money
Weekly money days are the best way to keep a check on your budget and update your expenses. You can use your pre-assigned weekly money days to review, forecast, make changes, check your financial accounts, and handle any financial matters that you did not have the time to attend to during the week. Weekly money days allow you to simply be with your money. Your date with your money allows you to see your money in a completely new way, with renewed excitement and positive energy. People who follow money dates transform their lives.
People who follow budgets to track their money feel so much more empowered with their money. They will now discover that they are making more conscious and proactive decisions with their money versus reactive decisions where they did not know where their money was going.
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