I used to think budgeting is for the poor. But I was so wrong until I tried myself and found it so useful.
So what is a budget?
I would define budget as an amount of money which I need to put carefully into categories to survive happily in my life without having to worry even for a second about the future.
You need money to survive in this world and the best years to make money are the early years for a commoner.
And what is budgeting?
Budgeting is when you learn how to spend your money wisely which leads to a more planned way of your financial outgoings.
Here are some are tips which lead me to see more opportunities for myself.
1.Accept where you stand financially rather than not accepting and continuing.
This gives you a clear idea on your insights and your spending habits. At first, it will be difficult but you have to manage beyond difficult. Getting a clear vision of your financial standing is very crucial because that leads to a more realistic plan. You need to start from looking at the categories you spend unnecessarily at and then try to limit.
If you are in debt then plan your way to get out of it first.
2.Budget shouldn’t hold you back.
The biggest mistake we do while budgeting is that we make unrealistic goals for ourselves and try to follow which of course after a while go off track and wonder why that is happening. Budget shouldn’t limit you, shouldn’t stop you from doing what you really love to do.
List out some of the hobbies/things you love to do and plan them around your budget, this will help you save and enjoy life at the same time.
3.Divide your budget into categories – depreciate, appreciate & monthly expense
Try to divide your income into 3 categories – depreciate, appreciate & monthly expense to start with and try to track these weekly then monthly. Further when you are more comfortable then try to structure them more.
This will give you a deeper and yet a rough estimate before you even have your pay day. Treat your finances as a priority because no one else will.