Budgeting for Beginners & Advanced

Money is an integral part of life, whether you’re a student, a working professional, or even someone who doesn’t currently earn. Your salary doesn’t matter if you cannot efficiently manage your finances.  Money management is a crucial skill for anyone who wants to build a successful life, stay out of debt, and improve their financial conditions over time.  

The first step towards managing your personal finances is being aware of what you are earning and what percentage of it comes under your fixed expenditure.  Next, you should create a monthly budget to improve your financial planning. You can maintain a budget on your own or use budgeting apps.  Your budgeting strategy should focus on three primary financial goals: 

1. Spending Wisely 

Understand which expenses deserve your money at the current stage of life, the difference between needs and wants, and what percentage you should spend on both.  

• Learn to perform expense tracking. Create a list of unavoidable expenses, like rent, taxes, EMIs, and essential bills. 
• Analyze what percentage of your income you would need for monthly expenses.  
• Learn to differentiate between your needs and wants. Think twice before making any expenditure on wants that are affecting your budget.  

• Reserve an amount every month for savings. 

2. Increase your Earnings 

Only if you could churn more money in those spare hours of the day. Well, this is the easiest part. Learn how to supplement your income or generate side income streams, all from the comfort of your home. Also, a great way to boost your savings is simply increasing your take-home income. We have the best opportunities for you to increase your income without any investment. 

• Start a business 
• Part-time online jobs 

• Become a freelancer 

3. Grow What You Earn 

There are certain low risk investing tips and tricks to elevate your income in the long run. As per financial experts, your early 20s are the optimum age to start investing and growing money.  At a young age, we often postpone the thought of saving or growing money as we simply don’t feel the urgency of it.  However, as we grow older, our financial responsibilities increase. This, in turn, gives a sudden spike in our expenses and at that time, we don’t know how to manage it all. 

But, investing early can give you the opportunity to grow your wealth with minimal risk. Even if the market becomes volatile, it won’t affect them much in the long run as they have time to recover.  

What else can I read about? 

• Budgeting Tips and Tricks 
• How to Become a Millionaire 
• Financial Education 
• Tax Planning 
• Investment Planning 
• Debt Reduction 
• Money Management 
• Savings Plan 
• Generating Passive Income 
• Early Retirement Planning
• Emergency Fund