Plan for Future Investment with Home Budgeting
Apr 10, 2017 Home Trading Steps
Home budgeting is the monthly expenditure plan based on your income. It helps you to know what exactly is your financial position and how can you stay away from being in the red. It also helps in planning for investments in future.
All the plans must have a goal with a clear focus. Whether it is saving for education, marriage or a future retirement, you must have a proper plan to achieve it smoothly. The only question is how to achieve it?
For the start, define your goal by asking yourself why you need to budget your finances. When you have figured it out, try to stick to the goal. To achieve this, remind yourself of your goals regularly. You can also, make a daily expense sheet and note down everything you spend at.
1.Get started with your plan to achieve your goal
Maintain a log book or a sheet for every month and enter the details of monthly expenditure like gas bills, electricity bills, loans etc. you can get a log book from the market or maintain than in the electronic devices. There are many mobile/ tablet apps available to help you keep a track of your expenses.
2.Determine your monthly income
Make a list of all your regular and irregular incomes from salary, markets, investments etc. record this in your log book or any app or sheet that you are using to keep a track of your expenses. Then calculate how much you can spend and save.
3.Determine your expenses
Record all your regular expenses like daily expenditure, EMIs, bills, transport expenditure etc. Also, enter all the irregular expenditures like weddings, functions, entertainment, shopping etc. At the end of the month add your regular and irregular expenditure to give you the amount you spend in a month.
Multiply your monthly expenditure with 12. This will give you how much you spend in a year. The difference will show you how much leeway you have for the future investment. If the difference is less then it means you are overspending. The record of monthly expenses will help you in cutting down your expenditure where it is required. Add the yearly expenditure like maintenance, property tax etc. to the record. They are generally overlooked and they come with some adverse consequences.
This will help you in shaping your financial platform and avoid over spending. Following the plan will help you achieve the desired goal smoothly. Whether you are a bachelor, a married person with a family, budgeting helps you in shaping and creating a good financial base for the future.
All the plans must have a goal with a clear focus. Whether it is saving for education, marriage or a future retirement, you must have a proper plan to achieve it smoothly. The only question is how to achieve it?
For the start, define your goal by asking yourself why you need to budget your finances. When you have figured it out, try to stick to the goal. To achieve this, remind yourself of your goals regularly. You can also, make a daily expense sheet and note down everything you spend at.
1.Get started with your plan to achieve your goal
Maintain a log book or a sheet for every month and enter the details of monthly expenditure like gas bills, electricity bills, loans etc. you can get a log book from the market or maintain than in the electronic devices. There are many mobile/ tablet apps available to help you keep a track of your expenses.
2.Determine your monthly income
Make a list of all your regular and irregular incomes from salary, markets, investments etc. record this in your log book or any app or sheet that you are using to keep a track of your expenses. Then calculate how much you can spend and save.
3.Determine your expenses
Record all your regular expenses like daily expenditure, EMIs, bills, transport expenditure etc. Also, enter all the irregular expenditures like weddings, functions, entertainment, shopping etc. At the end of the month add your regular and irregular expenditure to give you the amount you spend in a month.
Multiply your monthly expenditure with 12. This will give you how much you spend in a year. The difference will show you how much leeway you have for the future investment. If the difference is less then it means you are overspending. The record of monthly expenses will help you in cutting down your expenditure where it is required. Add the yearly expenditure like maintenance, property tax etc. to the record. They are generally overlooked and they come with some adverse consequences.
This will help you in shaping your financial platform and avoid over spending. Following the plan will help you achieve the desired goal smoothly. Whether you are a bachelor, a married person with a family, budgeting helps you in shaping and creating a good financial base for the future.
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