5 Ways of Creating a Budget With a Budget Planner

Creating a budget can often be a time taking and challenging task. Estimating all your expenses beforehand might seem like an unnecessary chore. However, if you ask the people who have a habit of creating a budget monthly, they will tell you the benefits that this simple practice can have. Creating a budget is one of the most crucial components of any financial journey.

It is good to know that there are plenty of budget planners available online for free that can help you create a budget in a matter of minutes.

So let us look at five budgeting tips that you must keep in mind before you use a budget planner and create a budget like a pro.

1. Save Before You Spend

Before starting to create a budget it is crucial to understand the importance of saving some part of your income as soon as it comes. Whichever budget planner you choose to use, it will ask you to enter your income initially.

In this section, you should always enter the amount you have left over after saving at least 20% of your income. You should transfer this amount to a separate savings account and not consider it while planning your expenses.

Budget planning is about staying within your means, and saving before spending a massive part. It is not recommended to take extreme measures for it, but it’s better to try to add as much as possible to your savings/investment account each month.

2. Start with Needs

Once you have entered your income, the budget planner's next step would be to enter your expenses. Since you will be estimating most of the numbers, it is better to start with fixed expenses. These would include rent, electricity bills, etc. Then it would help if you moved on to other variable necessities like food, travel, etc. After completing these two, you will have clarity on what you can afford to spend on your wants. These could include various subscriptions or weekend night outs etc. This is also the time when you might want to think of any of your bigger goals.

Most budgeting experts recommend saving for big purchases like a car separately.

3. Revise Your Budget Every Month

Your spending needs depend on many things. You might have to budget differently in your birthday month or during the festive season. It is best not to create a budget for longer than a month. There is a limit to the detail you can add to your budget calendar, and it is better to keep it as detailed as possible. Revise your budget monthly and prepare your plan according to the events you can forecast for the month.

Remember, budgeting is a self-learning process, and you will only get better by creating budgets regularly.

You might find yourself overestimating or underestimating your needs in some categories in the first few times. You must understand that this is not something that should get you disheartened and that you should revise your budget and keep improving till you find one that suits your needs perfectly.

4. Set Reminders

Most budget planners come with the option of giving a reminder. Since you could prepare a monthly budget, it is common for people to exhaust their full month's budget within 2 to 3 weeks. To avoid such a situation, it is best to set reminders when you have spent a certain amount of funds in a shorter than usual period. This would help you stay in check and keep your spending habits in control. You could even place reminders for due payments to avoid late fees.

Most budget planners also have inbuilt charts and graphs to show you your progress. You could analyze these charts to understand better the places you are overspending or categories in which you are exhausting your budget too soon.

5. Give Yourself Credit

Creating a budget is a self-learning process, and it is okay not to get the perfect estimates in the first go.

It might even take multiple attempts to start creating funds that match your lifestyle comfortably finally.

During this process, it is essential not to be harsh on oneself and give oneself time to adjust to a new spending system.

This is more like a life hack than a budgeting hack, but it is important to give oneself credit for choosing to take a step in the right direction. Every self-improvement process is complicated and demands sacrifices. Budgeting in this regard is not different. The whole idea behind using a budget planner is to understand better and manage your expenses.

So if you are looking for financial independence and wish to achieve your financial goals as soon as possible, making a budget is a habit that you should work on immediately.
Source: https://wizely.in/wizeup/budget-planning-tool.

Comments

Post a Comment

Popular posts from this blog

What is SIP? How Systematic Investment Plan Works?

SIP stands for a systematic investment plan. This is a system that allows investors to invest regularly in a scheme automatically or by themselves. This system will enable them to invest small amounts, which eventually add up in the long run and prove to be extremely useful. Another considerable advantage of this system is that it helps reduce the burden of market volatility through dollar-cost averaging. Since you are investing on a particular day each month, you are likely to get an average purchase price for the asset you bought at the end of the year. Example Let us suppose that you are in a job and earn a salary of Rs. 50,000/- per month. You are looking to invest in mutual funds and can afford to invest about Rs. 10,000/- every month. In such a scenario, you can opt for a SIP plan in your desired mutual fund. This will do that. Rs. 10,000/- will be invested on a particular day of each month in the mutual fund of your choice at the rate at which it would be trading on that...
Read more

आईपीओ क्या है और इसे कैसे खरीदते हैं?

  अभी हाल ही में आपने खबरों में सुना होगा कि जॉमेटो और कई अन्य प्रसिद्ध कंपनियों ने अपने आईपीओ निकाले है। आईपीओ आज  निवेश के उन माध्यमों में सबसे ऊपर है जिसमें जोखिम और रिटर्न दोनों ही बहुत ज्यादा है। कम समय में पैसों से अच्छा मुनाफा कमाने का यह तरीका बहुत  बेहतरीन तो माना जाता है लेकिन इसके जोखिमों पर भी ध्यान रखना चाहिए। आइयें आईपीओ (IPO) से जुड़ी कई अहम बातों को सरल तरीके से समझा जाए। प्रारंभिक सार्वजनिक पेशकश या इनिशियल पब्लिक ऑफरिंग (आईपीओ) क्या है? एक प्रारंभिक सार्वजनिक पेशकश या इनिशियल पब्लिक ऑफरिंग जिसे सरल भाषा में आप आईपीओ के नाम से जानते हैं, एक निजी कंपनी के शेयरों को जनता को देने की प्रक्रिया को कहा जाता है। सार्वजनिक शेयर जारी करने से कंपनी को सार्वजनिक निवेशकों से पूंजी जुटाने की अनुमति मिलती है। निजी से सार्वजनिक कंपनी में संक्रमण निजी निवेशकों के लिए अपने निवेश से पूरी तरह से लाभ प्राप्त करने का एक महत्वपूर्ण समय हो सकता है क्योंकि इसमें आम तौर पर वर्तमान निजी निवेशकों के लिए शेयर प्रीमियम शामिल होते हैं। इस बीच, यह सार्वजनिक निवेशकों को भी पे...
Read more

Follow The 21/90 Rule to Achieve Your Financial Goals

Image
  Whether it's in your personal life, family, business, or hobbies, one always seeks to have a healthy lifestyle. There is one simple and best method, the 21/90 rule - a simple and straightforward practice. Start saving in digital gold with as low as Rs 10!  Download Wizely What is the 21/90 Rule? Committing to a professional or personal goal for 21 consecutive days will eventually turn your goal into a habit. And pushing it for 90 days can make it a permanent lifestyle change. Now that you have known what the 21/90 rule is, the next step moving ahead is to understand how you can apply this rule to better your finances. There is always a need to improve your life even when you already might be living the life you desired. What're the best steps you can take to achieve with the 21/90 rule?  Download Wizely Use the 21/90 Rule for Financial Success Follow the following six steps to achieve the financial goals you desire. List down the things that matter the most to you finan...
Read more