How Proper Budget Planning Helps Curtail Your Expenses
Do you think it is
wise to keep a track of the outflow of money but not account it in a diary
or ledger? I would personally recommend people to note down all kinds
of expenditure and then later have a look at it to understand where the
money was actually spent.
I’m sure you will be awestruck to find that you have spent money on teeny-weeny stuff. If you need to know how much you will be spending on a thing in the long run, just add up all the monthly expenses done for unwanted stuffs and then multiply it by 12 to find the yearly expenditure and also multiply it by 5 or 10 to see how much you would end up spending on these unnecessary stuff, in the long run.
So, don’t you think you could have saved all that money and accrued interest on that lump sum amount? This is why we all need to make a budget.
When you start restraining yourself from buying unwanted things, you will notice that you do add quality to your life and also gain monetarily.
Small things do matter because every drop of water makes a mighty ocean. What if you could cut down on your eating out expenses and probably eat out only once or twice a month - that would save a whole lot of money by the end of the year and like this you can save a great deal by the end of the 5th year!
So, now you have your budget, curtail your expenses but still enjoy life as usual and finally have a good amount of savings accruing interest in your bank! The best part is you don’t have to completely give up on something but make sure you just have the right amount of it. This way you can cut your expenditure on many areas and save for a rainy day.
Make sure you fix a few long term and short term targets. There is no way you will be wrong. If you think there is a crisis or something should be given priority, then you have the freedom to alter your budget that would benefit all the family members.
Setting goals is very
easy – simply think of what you would like to do or own after a few
years. For instance, buying a house, depositing money for your kids’
education, purchasing a car, a splendid vacation in Hawaii or even a secured
retired life, are all hort term/long term goals one can set in life. Now
I’m sure you are ready to set your goals, make your budget and then
start saving to have a secured and happy future.
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