Control your Monthly budget in simple steps

Control your Monthly budget in simple steps

Step one

Estimating is the first thing we have to do, identify the entire monthly income of your household

Step two

Get an idea of spending pattern, track your fixed and variable expenses.

Step three

Analyze the information gathered, it will help you narrow down the areas where you can trim expenses

Step four

Give every rupee a plan. In particular, ensure the money you save has a plan. Set aside an emergency fund.

Step five

Keep evaluating your progress frequently. If you slip up, don’t give up. Start again.

Step six

If you get a bonus, ensure you prepay loan, also even as you do all this earmark at least 10% of your income as savings.

Step seven

Stop taking more debt. If more than 40% of your monthly income goes into servicing debts like credit cards dues and loan EMIs, stop taking on any more debt.

Step eight

Treat yourself occasionally. Budgeting is not about living a cheap life, it’s about being wise with money. Treat yourself to a small, non-monetary reward once in a while.

Step nine

Even after taking the mentioned step, you still find yourself in a tight spot financially; consider approaching a certified financial planner for help.