Budget Management Is A Myth
My budgeting skills suck! No, I am not being modest here. Allocating money to a framework and living in it, has never been my strong point. No matter what, my account runs dry, right in the middle of the month. Mismanagement of epic proportions. Although slowly and steadily, trying to get the hang of earmarking funds for my monthly expenses, savings and investments.
In this time of cash crunch, get your budget in line with these tips:-
A Restrictive Budget Is Bound To Collapse
Understand that cutting down on your costs and saving money will not be fruitful. Give room for miscellaneous expenditure. Concept of living in bare minimum is unrealistic and frankly idealistic. You need to spend money, where it is needed. A realistic framework will help you in not maxing out on your budget.
Keep The Balance Between Ambitious and Realistic
Pad your budget, keeping in view your lifestyle. You can’t overhaul your lifestyle in order to fit in an ideal, simplistic living. Surplus amount at the end of the month seems a tempting picture, but it will be futile if you end up overspending the very next month.
Prioritise Your Economics
There are three broad categories of expenditure. Utilities expenses, consisting of food, electricity, water, property tax/rent, travel and other variables of expenses, which comes in daily usage. Miscellaneous expenses on recreational activities and other modes of entertainment. And, lastly our savings, which are the most important part of budget. Even if you start with a token amount, you may increase it in future, keeping in tandem with the inflow of money. Take care of these first and then you can go on adding other variables to your list.
Not Tweaking Your Budget
Your savings and investments will be thrown out the window, if you don’t adjust it on a monthly basis. Spreading out your budget is just the beginning, you’re still not good to go. Fluctuating bills, credit card statements, or any unexpected expenditure or even worse an emergency. Visit your budget on a monthly basis and take stock of your bills at the end of the month. This will help in managing your budget better the next month.
Get Your Spouse Onboard
The biggest mistake we make, is to let go of the reins of our budget once we are hitched. Post marriage, it’s necessary to discuss the distribution of expenses and allocation of the monthly budget. Neglecting your budget outline will spiral your expenses and throw your budget out of gear. Include your spouse in the allocation and brainstorm to join hands (and money) for a successful budget.
How are you coping with the demons of demonetisation? How do you manage your economics? Share with us your budget hacks, we will be happy to publish them.