Wondering what it takes to become the true queen of budgeting? The answer lies in getting the basics right. Read on and find out!
A solid plan charted out at the beginning of every month, followed by a month end spent wondering what happened to that plan? We’ve all been there, men and women alike. Is there a way for us to really bring about a change to our spending habits? Turns out there is.
Read on to discover some useful and simple budgeting tips every woman would love to adapt. Psst… this can be helpful to men too!
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Practice simple math
Though most people dread the very mention of the word ‘math’, this infamous yet useful aspect of life does not have to be complicated when it comes to budgeting. Let’s go back to our first acquaintance with numbers and mathematics. Our journey began with counting; yes, adding and subtracting numbers. Well, that’s pretty much all you need when it comes to budgeting.
Add up your total income and then subtract your total expenses from it. That will instantly tell you how well your budgeting plan is working out for you. If your income is a greater amount, you’re doing it right. If not, don’t fret. This article will help you improve.
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Analyse what went wrong
If basic math has revealed that you’re spending more than you earn, just look back and analyse where your money went. It could be anything from ordering out too often to getting carried away with your e-shopping cart. While spending on your needs is unavoidable, you may want to cut back on the wants.
If your savings goal is long term, it’s always good to cut back on the frills. Maybe you could stream movies online instead of going to the cinemas, or throw a party at home instead of splurging at a fancy pub. Saving a few bucks here and there can make a big difference to your budget.
If you love shopping, you can always consider getting a Cashback Credit Card that’s loaded with benefits that are sure to help you save as you swipe.
See how it’s working out
Once you’ve managed to cut back on the frills for about a month, do your review at the end of the month. You’ll surely notice a positive change in the math. Feels good, doesn’t it? You’re on the right track to becoming a true budgeting rockstar.
Gradually increase your savings
Now comes the hard part of not only maintaining a consistent savings amount every month but also increasing it gradually. Just like how you expect to get a hike every year to cope with the increasing cost of living, you must also give your savings kitty a hike. It’s only fair, right?
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Do not cut back on quality of life
To keep your entertainment expenses in check is fine, but cutting costs when it comes to your primary needs may have an adverse effect on your finances.
For instance, let’s say you need a new refrigerator for your home. Assume that there’s a latest model from a reliable brand available at, say, Rs. 20,000. Your other option is an ordinary fridge that’s being sold at a pocket-friendly price of Rs. 14,000 but comes with its limited features and technology that’s not future-ready like your branded fridge. Here, the smart way to go is to choose the first fridge although it costs more because it’s going to last for a long time.
If you decide to go in for the second fridge, you may save Rs. 6,000 right now, but three years down the line, you may need an upgrade, so overall, you’ll be spending more in the long run. When it comes to things that add value and comfort to your daily life, don’t hold back.
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Now that you’re the rockstar of budgeting, why not take a tour of our website and discover financial products that are sure to crank your game up a notch!