In today’s time, as difficult as it is to earn money, it is much more difficult to spend it in the right way and at the right place. If you make the budget of your money in the right way, then you will be able to spend your earned money not only at the right place but also in the right way and with the right plans, you can also grow your hard-earned money in the right way.
Make a budget of money in these ways
Here I have told some tricks which I use in my personal life too. With these tips, you all will also get a lot of help.
Your Monthly Income-
First of all you must know what is your total income for the month. When you understand your income properly, then half of your work will be completed, and it will help a lot in making a budget of money.
If you do some such work due to which you do not have any fixed income for the month, then you can take an estimation, i.e. approximate income.
Make a list of your expenses for the whole month.
Write down all your important expenses of the whole month on a paper, such as rent, electricity bill, groceries, milk, water bill, phone bill, TV, internet recharge, school fee, travel, and other important expenses which occur every month. Apart from this, if you are on any kind of EMI, then include that as well. Try to write down all your expenses in detail; only then will you be able to make a proper budget of money.
Some non-essential expenses
In every household, along with the essential expenses, there are some non-essential expenses too every month, like shopping, sometimes going out for dinner, or some suddenly essential things for the kids or something like that. Sometimes some non-essential expenses also become necessary, which have to be done. In such a situation, it is important to manage these things as well.
Some other necessary expenses-
There are some expenses that have to be taken care of yearly, like any kind of insurance. These are expenses that have to be incurred; include them in your expenses.
Save some money for emergency times too-
Sometimes emergency expenses also come up which have to be managed from our income and we have to save for that too. If we do not make a budget of money in the right way, then we will have to worry about these emergency expenses when they come.
Set up savings from your income-
Whatever your monthly income is, you will have to save some amount from it. If I could do my thing, I would try my best to save 25% of my income every month. You can also similarly set your savings so that you will also have good savings every year.
Keep track of your monthly budget—
Everyone must keep a check on their monthly budget and expenses. Some months the expenses are more and some months they are less. For example, my grocery shopping is Rs. 4000, then in some months it is Rs. 3000 and in some months it is a bit higher.
Investing the saved money
Now if you have saved some money from your monthly taxes, then by investing it in the right place, your money grows, and it is very helpful in the coming time.
How to make a budget?
Making a home budget is not just about money; it means how we run our home in a limited time and how we save that money. By making a budget, we get a good account of every big and small expense in the house and most importantly, we also avoid unnecessary expenses. Always remember that if you are able to save something at the end of the month, then you are truly moving towards financial freedom.
FAQ
Q: Why is it necessary to prepare a budget every month?
A- By preparing a budget (budget of money) every month, you can save some money by spending it in the right place and in the right way, and most importantly, you will not have to think about how to prepare a budget for the entire month.
Q: Are online budget tools or apps useful for us?
A- This is a very good question. if yes, all these tools or apps are useful. You will get both their free and paid versions. You can use them at your convenience.
Conclusion-
This is a disciplined process, if you understand it properly then you can avoid financial stress in the coming time or you will see that your financial stress will reduce. Make a budget with planning and apply that budget with some strictness and see its benefits in the long term.
If you all liked my guide or if you found something lacking, then do let me know in the comments, and if you also want to give some tips from your side, then it would be icing on the cake.
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