If you are one of those who are left with little or no money at the end of the month, this is for you! From fashion to food and movies to travel, we know how to live our life to the fullest. And amidst all this, the weight of our ecstatic experiences is borne by our pocket. This is where budgeting comes into play. An effective budget can land you with savings you never thought you would be able to save. Read on to know more:
What Makes Budgeting Important?
- If you're tired of spending all your money by the end of the month, its high time you start budgeting
- Budgeting helps you handle money efficiently. A woman who can handle her money can also handle herself
- Budgeting helps you save money which can further be capitalised and add on to your assets.
- Budgeting makes you responsible too. So from money to a responsible attitude, budgeting does a lot for you.
What Is The Need To Save Money?
Many of us would not agree with the concept of saving since we are 'Live in the moment' type of people. But life is a mélange of good and bad. It is always better to be prepared for the bad while we're still living in the good. Savings not only add weight to our bank account but can be further capitalised through investing and other such options. This, in any case, is way much better than spending recklessly. Apart from the monetary reason for saving money, it also has an added advantage. Once we learn to save money, we actually become responsible with it and it is then, also reflected in other spheres of life.
Overall, a woman who knows how to handle money can handle anything in her life. In order to take hold of your life, you first need to learn to handle your money. In fact, it is a proven fact that when it comes to investing money, women do it better than men.
Does Saving Mean Cutting On Merry Making?
Definitely not! When we say efficient saving, it means saving even after catering to our needs. This may involve mending our ways to save. There are two options for you to go from place A to place B. Now you can book a cab, get an auto, or use the metro. And it is obvious, the metro is going to cost you way much less than a cab. This is an example of how mending our ways can prove to be beneficial in saving money.
Planning Is All That You Need
Is it really difficult to save money? Obviously no. Starting with something new definitely comes up with challenges. And so is savings. When you decide to save, you're not going to shop recklessly. You're not going to invest in useless items. You know now what is required and what is not and spend accordingly. And all this is not difficult if you have a plan ready. Believe me, if you create an effective plan for spending, you'll be surprised over how you can survive by spending even a quarter of the money you used to spend before. Congrats! You have three-fourth of income saved with you.
How To Plan And What Is Budgeting?
The best way to plan efficient spending is to differentiate necessary spending from unnecessary spending. Setting a threshold for spending is called budgeting. Budgeting helps you set a limit on your spending and helps in saving. Here are some ways you can start with for budgeting;
- Jot Down Your Needs
Writing down where and what amount will you be spending the entire month is the best idea to begin with budgeting. I used to be surprised when my mother saved a large amount of money meant for household needs, even after providing us with all that we need. Here's when budgeting plays its role. Write down what you need in a month and the expenses associated with them.
- Be Strict With Your Budget
Budgeting is of no use if you keep modifying your expenses. Discipline in budgeting is very much required. Stick to the calculated total of expenses. However, keep in mind to always include additional costs to your expenses so that both your expenditure and savings go swiftly.
Many of us would not agree with the concept of saving since we are 'Live in the moment' type of people. But life is a mélange of good and bad. It is always better to be prepared for the bad while we're still living in the good.
- Savings Are Your Capital. Don't Let It Rest
The best part with savings is that they can be further capitalised. Money has to be fluid, else of no use. Investing smartly comes with the next step in financial planning and hone in on your monetary skills. For how to invest efficiently, you can Read here: Thinking of Investing Outside India? It’s Easier than You Think
Overall, a woman who knows how to handle money can handle anything in her life. In order to take hold of your life, you first need to learn to handle your money. In fact, it is a proven fact that when it comes to investing money, women do it better than men. Don't believe me? Read Here: Truth about investing: Women do it better than men, get the tips
Picture Credits: Charter College