In our lives today, it seems that we are constantly in our running shoes, because all we do is race to fulfilling our duties, necessities and obligations.
Expenses are never-ending. How we wished that we could count the expenses on our fingers, but unfortunately we cannot.
It has become extremely necessary to have a budget made. Having a budget in place allows more breathing space when it comes to financial decisioning. We can actually take a pause, and direct our expenses better, without being hasty about money matters
We will talk about how we can focus on administering our expenses and savings.
- 1. Track your spends and earns for every month. Figure out what you spend and where you spend. It goes for your earnings too.
- 2. Also prioritize your bills. The necessities have to be thought about first. Rent, Groceries, Electricity tops the list.
- 3. Now is the time to plan for your future goals and dreams. Start saving and investing to make the dreams turn into reality. Sit and discuss your goals with your family, and ask them to give in inputs too about what they want to achieve, lets say in the next five years. Such brainstorming is always productive.
4. Create categories for your goals. Tag them as short-term, mid-term and long-term.
Your short-term goals could be buying a refrigerator next month, or purchasing a car next year.
Mid-term goals could be about you wanting to go on a vacation with your family to Malaysia
Long-term goals would be you thinking about retirement plans and policies.
5. While we have created goals, we need to also assess the value associated with them. Inflation is a factor that can cause an upheaval in our financial dreams. Short-term goals would not be affected by inflation. However mid-term and long-term goals can be affected by inflation. So you need to be wise enough to invest also side by side.
This will help your money boom too over the course of time.
Also having a correct estimate on the value of assets is imperative.
- 6. After estimations, and goal settings comes the most difficult part. Now you have to save for your goals. That means you need to keep aside some money for your different goals. Shelling out money at appropriate intervals will help you in achieving all the goals that you want.
7. A great way to track, monitor and create a more systematic budget is through the innumerable money management apps available in the technical horizon. These apps act as your financial advisors and guides and they accurately advise and calculate spends and earns.
Some of the most popularly used money management apps are Wally, Mint, Homebudget etc.
You can get a detailed description of the same at money-management-apps
Managing money seems like a task impossible. But we assure you that with budgeting and prioritizing your monetary needs, it is a task really easy.
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