A person can be defined by the people around him like friends, colleagues, family, etc. It is not always necessary for them to have a similar attitude and mentality like yours. Ultimately, they have an impact on your lifestyle.
This article will help talk about ” How to Plan your budget carefully“?
In general, every person is likely to have and get to meet people from different classes of life. All that matters is who are you getting influenced by! Are your friends or family acting like your motivators or role models?? Are they having any impact in your life?
I say very a few are able to differentiate good amongst the bad. We must frame certain limits which we are never going to cross no matter what or who forces you because it will ultimately show its impact on you. Having more number of people in your life is not valued when compared to the kind of people you have.
You have to be very cautious while selecting people you hang out with especially when you are on a plan of saving money. Life is just not the same always, it’s never too late to set a limit on the money you are going to spend.
Here are a few tips you can follow if you want to live a happy budget-conscious life:
If you have more of partiers in your group then you are likely to spend more, to reduce the count and start hanging out with people who are economical.
Create an opportunity:
Try out part-time jobs by which you stay focused on work, indulge in new things, meet new people which result in making money at the same time.
Be a Planner:
There certainly have to be someone to take the initiative of coming up with ideas when you plan for a get-together or like. Why don’t you be the person? By doing so, you can set a plan which you want and is reasonable. This will develop your organizing and managing skills which are good for an individual.
Introduce new ideas:
Suggest potluck parties which are fun, wallet-friendly and are trending too. You can always put on some extra efforts of making it more exciting by coming forward with different games, fun activities and etc. Instead of partying Friday nights you can save the money and plan for cycling on a Sunday morning. This is much more relaxing, it will be fun if your friends join you.
Budgeting is fun:
Budgeting is not about restricting the way you live or would love to. It’s just about priorities and making best of what you have. It’s about focussing on long-term goals by giving up on few short-term one. Well, planned budgeting is nothing but investing in a better future.
Planning out any activity that involves nature is fun and inexpensive say it be trekking. Form a clutch, pack your bags and go over. Trust me it will be one of the best low budget trips you might ever have.
Be a self Accountant:
Maintain a record of what you have earned, mark your own target, let the month go. See what you are left with it at the end. By doing this you can have a focus on how much is left and can plan accordingly for the next month and the next and the next. Mentoring kids about these aspects of their children is very important and we need to educate them about these aspects (Facts with the kids)
Involve your spouse:
If you are married involve your spouse in planning and maintaining your budget cause there is no better person to understand you better than your spouse.
Never ever hide your budget near your spouse or kids, if you have any. Cause they are your family and every decision of yours will certainly impact them too.
Many at times you get carried away by your friends or people around you. Believe me or not your friend’s behavior and emotion will have an impact on you. You tend to imitate those you are surrounded by.
If you are a social activist you will definitely have many events coming now and then. You must be very sure while picking up the events you are going to spend on. Ask few questions before saying yes to any event. What is the event about? Are you getting any benefit from it? How much are they charging to attend the event? Is it worth spending for such event? Don’t you get other opportunities attending similar events?
All in all, it is all laid back to the individual, one has to understand and make their own decisions and it is one of the qualities that the individual has to develop through experiences. If you are still lost and didn’t match your goals then you must follow 50 30 20 budget rule.
So what is 50 30 20 budget rule?
So 50 30 20 budget rule is nothing but your entire net income for the month is divided into three categories of expenses. So let’s understand this in a bit more detail:
50% of your net income for the month should be allocated for your needs. This amount should be exactly met and no extra amount should be used to fulfill the need. You have to be very strict in terms of controlling your needs. Basically, need vs necessity should be evaluated. Need is something that is good to have. Necessity is something that is necessary for survival.
So the next 30% of your net income for the month should be allocated for your wants. This can include savings or can be accumulated for your long-term goals. This 30% is something that you can save or you can spend based on your want list. This is extremely important and one should be very cautious about what they are going for.
Rest of 20% of your net income for the month should be allocated for your loans and debt repayments. This amount should be limited to only 20% of your net income. So we advise staying away from the EMI based product buying options. Initially, the offer looks attractive but your monthly debt repayment amount will be significantly increased and after some time it becomes a burden.
This article is focused on teenagers and newly married couples and to the matter of the fact anyone who is looking to save money.