Running low on budget? Use these 5 tips to use your money wisely
Budget making can appear to be a stressful task. But if you are someone who doesn’t keep a track of it or doesn’t spend as per your budget, you might be looking at a possible money crunch. Here are five easy ways in which you can manage your budget and not burn a hole in your pocket.
We all have seen our mothers keeping a thorough check on the monthly spending. As boring and as tedious a job we may all find it to be, the truth is, it is a skill we all must hone! Many youngsters these days have been leading a life of an ‘urban poor’ – a term that has been given to the young people who are habitual to leading a luxurious life but one that is beyond their budget. In simpler words, ‘urban poor’ are those who spend more money than their capacity, and in the process, exceed their budget by 10 folds.
Living life on a budget can be challenging, but is it impossible? No! All you need to do is be smart with managing your income and expenses in a manner. Here are five ways in which you can live your life on a budget, without having to make compromises on your wishes and lifestyle.
Know your income: It is very important to know the sources of your income and keep proper track of it. If it is from a part-time job or a monthly allowance, knowing where it is coming from will help you keep a check on your spending. It is advisable to keep a planner on your phone or maintain a separate book to split down your income. This will be a more organised approach to planning your budget.
Use 30% of earnings for savings: No matter what your income is, always make it a point to transfer 30 per cent of your total income towards saving. The rest of 70 per cent is what you get to spend.
Conscious spending: We tend to spend more money than save it. We all have had those shopping sprees where we literally picked everything that we saw and liked, eventually spending a bomb of money. While it is completely all right to shop your hearts out, it only makes sense that you buy what’s actually needed. Try this: next time if you are out shopping and you like something, don’t buy it. Come back after a week and see if you still have the urge to buy it. This would help you understand if you really required to buy it or not.
Have goals: It is important to have goals and more important to complete those goals. Keeping goals can help you keep a track of your lifestyle. It is a great way to motivate yourself in sticking to a budget. For example - having a goal of eating homemade food can help you in saving money instead of spending it on food ordered from outside.
Secured lifestyle: Having control over your money can lead to a more confident and independent individual. This will not only help you in the short - term but will also help you in planning your future for the long- term.
Making a budget is not an easy task but is a very important habit that should be inculcated in your life. It makes your life more organised. Sometimes, your budget plans may not go accordingly, so it is always wiser to save first and then spend the rest. Have fun budgeting!