It is very easy to spend thousands of rupees on just one shopping spree. When you get your salary in your hand, you want to spend it and get what you wanted for a long time or you spent it entirely on your bills.
Either way, if you don’t plan your monthly budget, you might splurge a lot and save nothing. Today we will look at 4 steps with which you can save money monthly to make your future a bit more secure and also plan your yearly budget.
- Know your income and calculate your expenses
Before you plan on what dress you want to buy next, you must be aware of how much money comes home and how much money goes into your daily life. By doing this analysis you have a rough idea of how much money you can save and spend extra if you are successful in saving a lot! To know how much you are spending, you can track it for 1 or 2 months and then start planning from your 3rd month.
- Separate your WANTS from your NEEDS
This question of wants and needs never ends. It again comes back to what you need (necessity) and what you want (luxury). As long as you separate the 2 things and divide them in different months you can achieve both.
- Add your costs
After you have planned your wants and needs and gone through with your plan for a month, calculate your expenses and see how much did you accomplish with your budget goals.
- Create your own budget rule
You can divide your earnings into ratios after you know how much you spend on different things. Take for example you can divide your 100% savings to 40/30/30 or 50/30/20 with your daily necessities and your wants.
So, these are some steps that you can follow to keep your budget under control and save a lot more than you barely did!
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(Image credits: The Dispatch)