Remember your new year goal… financial saving… start saving… investing etc. etc. here we are in the 4th month of the year 2019 and are you still stuck at where to start from? We can very well understand this situation and have come with 4 pro tips for you to start saving better and budgeting in the year 2019.
Thoughtful and diligent budgeting is very important to successful saving. Have a look at these pro tips which will help you budget better;
1. BE PRECISE ABOUT THE COSTS
The guessing game is not a good thing to practice when it comes to managing expenses and finances. All monthly expenses of yours should be well calculated and in your complete knowledge. Keeping a record of things is very important. Unless you withdraw a large amount of money from your savings and pay the bills, all the spending and payments are well recorded in your bank statements which can be accessed online as well as offline. Keep a vigilant eye on your credit card statements and debits.
One of the biggest reasons why your budget may not have worked previously may be poor budgeting. So, as you just plan for this year’s savings and investments, go through your monthly, quarterly and yearly expenses and take control of your money.
2. KEEP A POCKET FOR ONE-TIME EXPENSES
Monthly rent, home loan EMI, czar loan EMI, cable, grocery, etc., we know you are smart enough to spread out your monthly expenses over the 12 months but did you include the one-time expenses as well?
That foreign vacation you have been planning or professional license renewal or the gold ornament you have been waiting to buy or the latest smartphone, all these are one-time expenses which need to be considered as well.
Now if you have not pre-planned for these expenses, there is a high possibility that your yearly budget will be disrupted. Plus, that is going to come back to you as a shock when it will be due for payment. Hence, it becomes very important to take note of things which are high on the amount and recur only once or twice in a year.
3. CUT EXPENSES REALISTICALLY
“I will cut out on those extra expenses and start saving some bucks next week onward” this is one of the most common phrases you hear from people at one point or the other. But this is fundamentally the craziest statement one could ever make. There is nothing like cutting out the whole set of overhead expense you make. This will never help you realize the actual financial goals. Rather the best way of cutting expenses is to start slow. If you are someone who eats out four times a week and takes coffee daily and you plan to cut out the whole eating out thing at once, that is not going to work. It may sound blunt but it is true.
A better way of doing things is to start slow and move up cutting the expenses gradually. You can start with eating out twice a week and cutting 2 shots of coffee in the whole week. This way you won’t miss your daily routine and would start cutting down on the expenses gradually.
4. EXPENSES ARE FOLLOWED BY SAVINGS AND NOT VICE-VERSA
Generally, the reverse order is followed. We tend to spend first on the things we need and want and then when the expenses are over, a portion of left out is put to savings. this is absolutely wrong at so many levels. First, it would cultivate a bad habit of spending the moment you get your salary or income from whatever source. Secondly, this will make you feel broke by the end of the month, especially the sale months are very vulnerable. The schemes offered are very lucrative which make you spend over the head, don’t fall in that trap. Beware and Be Cautious!
Commit to yourself at least 15% savings as and when you get your salary. Then make the spending. This reverse order will ensure you have saved by the end of the month which can be used as emergency funds or a down payment for your apartment or make payment for your smartphone.
All these tips do not need any professional expertise but will help you improve your spending habits significantly. The by-product of this practice is a saved corpus by the end of every month and finally at the end of a year.
Start Saving, Start Investing!