Every big thing is achieved by the small beginning. So, to build an empire in financial stability, your monthly expense management will be the root cause. Managing monthly expenses is an art of financial planning.
WRITE A PROPER BUDGET:
This might be surprising, as we recommend to write the monthly budget. Yes, there is power in writing anything. That has a connection to our subconscious mind.
We should have to plan a budget every month, to have perfect financial planning.
We have to categorize the budgets into needs, wants, savings, and loans. So, it will be easy for us to find the financial allocation.
Please find the sample copy of the monthly budget. You can download, edit, and use it for financial planning. Monthly budget
CHECK YOUR PLAN VS ACTUAL IN BUDGET:
It is very easy to write a budget. But the most important thing is to check with the plan and actual expenses.
Always, have a small notepad in your hand. And, write even the small expenses you do and update in your budget note by month-end.
Always, analyze with plan and actual. This will give you an idea of where you spend over the plan. Also, 12 months analysis will make your financial planning very strong.
PAY ALL YOUR BILLS ON TIME:
Every month we will be receiving some bills like mobile and Internet postpaid bills, current bills, credit, loan EMI.
Pay all your bills and EMI on time to avoid late fees, which also impacts on monthly savings and investments.
Set all your bills to be paid by 1-5thof every month. Also, set an auto-debit option for paying bills.
DON’T COMMIT ANYTHING OUT OF BUDGET:
This is the most crucial part of managing budgets. We plan our budget with full care and attention.
When we see advertisements or offers in stores, online shops we tend to buy it instantly. This we have spoked already under instant gratification.
As a family, decide on the budget and also plan in writing on the shopping items, and buy as you wrote. Never see for other items than on the list.
AUTOSAVE ON DAY-1:
The first part of financial planning in the monthly budget is savings. Most of us plan savings, but we fail to do as per plan.
This is because of having a mindset of saving after all our expenses. This strategy will not make us be financially free.
To make a proper discipline, subscribe all your investments over an auto-debit option on 1st day of every month.
REDUCE YOUR CREDIT CARD EXPENSES:
We personally don’t advise credit card. In fact, you use, be very cautious with the usage.
Try to minimize the expenditure using credit cards month on month. Actually, figure out how much you sent per month. Analyze in what percentage we depreciate the expenditure of credit cards.
Credit cards are harmful to financial planning. So, avoid using them as quick as possible.
CANCEL ALL THE UNUSED SUBSCRIPTION:
We tend to subscribe to products annually while we see that would benefit us. But, reality always differs from what we expect.
Most people have the habit of joining the gym as a New Year’s resolution and will pay the annual subscription. Gym owners know their real market is in the New Year period. So, they post few offers on annual charges and they earn.
We go to the gym for a month or two months and due to some circumstances, we quit. This happens with 90% of people.
In the same way, we subscribe to magazines, newspapers, etc.
If we find these subscriptions are not used properly, please unsubscribe the following years and save.
When you plan your life for financial stability and monthly budget. The first thing you should say bye to offers. Business planners know how to attract people for their growth.
They sell the product at the same cost it meant to be, but under the banner of offers. At the same time, they sell you two or three products.
These offers can cause a bleed in our financial planning and there is no medicine to cure it. Prevention is better than cure.
GO BY WALK FOR NEARBY SHOPS:
If the shop is located 2-3 kilometers near us, don’t take a car or bike to navigate towards for purchase. Take a walk.
Petrol rates are at a high price now a days, we can save more money and increase our investment portfolio.
There are two benefits. One is wealth and the other is health which we gain out of walking.
SAVE THE YEARLY PAYMENTS PER MONTH:
This means, in case of insurance premium we have to pay annually. Let us say, health insurance. If we pay in a single shot, the specific month’s budget will become a burden.
In spite of this, you can divide the same amount into 12 and can save every month. You can use recurring deposit and earn some interest on investment.
The above mentioned 10 ways of making a monthly budget will make us hold healthy financial planning.
We wish you all will follow the steps and have a disciplined way of budgeting, analyzing, and rectifying the mistakes done over the past.
Wish you all a financial freedom lifestyle soon.