Importance and Tips for Budgeting

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Don’t tell me what you value; show me your Budget and I’ll tell you what you value. –  Joe Biden

We, as an Individual/corporate faces money crunch issue every year or once in a month or couple and, couldn’t blame on anyone except government policies. Isn’t it?

Have you ever come across the situation, where you thought would have the money in a pocket but in reality you don’t have plenty of funds to buy our desired items? Though today,  we have the Credit Cards/Postpaid Facility (Thanks to Modern Payment Mechanism) but do we really need to use credit option for items which are for one-time use?

Having a Credit Card is a good thing, only if you have sufficient liquidity/surplus available (in-hand) to pay the cost in time or in crunching situation. Now, it doesn’t mean that you can, keep 5-6 credit cards and spend money like a free bird. Remember, Excess of anything is Bad.

To make a smart move, its time for you to make a budget like the government of every country does every year. Making a Budget is simple, easy to learn and can be interesting too if the right budgeting tool is opted.

Before we discuss the tools, let see what are the benefits of Budgeting.

Benefits of Budgeting

Most of us understand the term BUDGET i.e. an estimate of our income & expenditure (spending). And making a structured plan of such estimates is called Budgeting.

Making a budget is not a one time process, it is a regular method of tracking – what comes in and what goes out from the pocket. There are lots of benefits of budgeting which can save you from dicey spending. Here are some

Importance & Tips for Budgeting

Tracking Tool

Most common and beneficial thing about budgeting is that it can help you in tracking your money flows i.e. where the money is going and where it is coming from. Writing every month spending can actually help in tracking all your year-end cash outflows and inflows.

Increases Savings

When you know, where the expenses are coming from, then you can easily able to either control or avoid it. Thus, helps in building a small corpus which leads to generation of piggy bag for another long-term savings.

Preparation tool for Emergencies Needs

Needing funds at the time of money crunch shows the Actual Financial Health. And that time, credit is the last resort, but this situation can be easily avoided when you are regularly maintaining/following a budget. With budgeting, you have sufficient funds to spend at the time of inevitable needs.

Helps in Achieving Goals

Budgeting is one of the key measures for goal achievement as, it helps in  reducing stress and controlling your extraneous expenses which further leads to savings for future goals.

And many other direct/indirect benefits budgeting gives. Besides, benefits, what measures one need to follow to keep on track with budget is the most important thing.

Budgeting Tips to keep you on Track

  • Starts with zero at the beginning of every month. This leads to Income – Expenses = Zero Outgo. Thus, reduces the panic of Negative Balance and Motivates you for Positive Cash Flows or Zero-Balance Budget.
  • Don’t Limit it to Personal Budget involves dependents or your spouse expenses in your budget. Family Budgeting helps in building accountability towards sticking to the goal. It makes Our Money from My MoneyBest teaching lesson for Money Management.
  • Every Month has different expenses  (Festivals or special family occasions) which are not controllable so consider each month as a new budget month and plan accordingly.
  • Prioritize your important needs first i.e. necessities items. And then plan on for other consumable categories of items for the budget.
  • If you still face money crunching issues (Negative Budget), then try to trim out the expenses in a small step by step method thus, leads to savings for extra funds.
  • Use online/pre-installed Budgeting tool to track all your income and expenses. Thus, saves time and make budgeting an interesting tool to save money without spending it on anyone advice.

To make the task of creating budget simple, we have enclosed our Special Designed Budgeting Tool  for the individuals like you.

Facing Budgeting issues then, opt for our I-Financial Plan (Premium) to get rid of all your Personal Finance Issues. And take first step towards Financial Freedom.