Budgeting is the core of financial planning. To know how it can turn the tables for your financial future, read this article!
Financial security is a need rather than a want- for you, for us, for everyone in general!
How one achieves it is a different matter.
Some are naturally financially savvy and achieve this easily, while others may have to work a little harder and may even seek some professional guidance.
You may like risk, others may not. But where everyone’s path crosses is the beginning of this financial journey- the beginning of budgeting.
Recall the time when you got your first salary. You must have been excited- irrespective of the amount.
You may have gifted something to your family from your own money- beginnings are meant to be celebrated!
But that’s the case with the first salary, after receiving your second salary, you are definitely more aware of your finances, your spendings and your budget.
Needless to mention, your monthly income decides your budget.
How you spend and save your money determines how easily you will be able to achieve financial security.
Your budget needs no overemphasis since your current and future financial goals can easily explain if your finances are on the right track.
Budgeting is the financial term that deals with your spending and saving behaviors.
Basically, under budgeting, you learn how to manage your money. Not a difficult task, is it? Maybe yes.
Every financial guru would tell you that budgeting is the first golden step to a financially secured future. Here, we are doing nothing but emphasizing this fact.
Let’s take a look at 5 prominent reasons why your budget needs your attention!
1. Have future Financial Goals? Sync it with your Budget!
We all have something that we wish to achieve in the future. Something realistic and something achievable can only be determined if you keep track of where your money goes.
Through your budget, you can create a realistic financial goal for yourself. If you can’t manage your money efficiently, you know that it would be impossible for you to, say, buy a house in the future or study abroad.
To achieve your financial ambition, you need proper planning- you need a well set up budget! In order to work towards your aim, you may have to give up on some of your current luxuries.
But if you are a keen budget planner, you may even be able to figure out ways to get a hold of your dreams without compromising.
Yes, you can’t spend recklessly on every shiny item that you see, but with a prize in the future it would be easier to walk away empty-handed.
2. Excessive Spendings? Track them with your Budget!
If you are someone struggling with bad spending habits, a well-structured budget can be your only saviour.
When you find yourself struggling with the bills at the end of the month, you know that you didn’t make use of your income wisely.
That’s the call for you to start tracking your spendings.
Where you spend is somewhat more important than what you save- you can’t save the amount that you don’t have in the first place.
As a beginner, we all struggle with our unknown spendings. If you too feel that your money keeps draining into nothing, start budgeting!
As soon as you have your income, keep some part of it aside in your savings account. Next, sort out your monthly needs and wants- ensure that you make a clear distinction between two.
Once done, determine which of the expenses are reckless and cut down on them if you can. This way, you will find it easy to manage your money and even save it!
3. Budgeting makes your initial Saving Plans a lot Easier.
Saving and investing is quite challenging, especially if you are a newbie. But with a proper budget plan, where you are informed about your spendings, you can determine the minimum amount you can start saving with.
You can simply start by keeping some part of your monthly income in your savings account. Later on, when you feel ready, invest in some profitable asset like digital gold.
4. Lacking an emergency fund? Your budgeting skills can save you!
An emergency fund is your saviour when financial turmoil hits. In this uncertain world, you can never predict emergencies.
In order to sustain your living expenses during times of a job loss or some critical health condition, you need an emergency fund.
Keeping a fund that is enough to sustain a minimum of 6 months of needs is advised by all financial advisors.
Having a proper budget and saving plan can help you set up an emergency fund quickly.
You must ensure that your emergency fund includes a health insurance plan, a life insurance plan, etc.
5. Get a hold of your Money- you will Need it!
Are you lacking some shut-eye because of all the bills dancing in your head? Worried about losing control of your own hard earned money? Well, make a budget bud!
People who struggle to keep their money under control often lose their sleep. But when you have an amazingly curated budget planned, nothing can disturb your peace.
But that’s just the tip of the iceberg- a budget can be your mini financial portfolio. You can plan and execute easily. Later on, you can include investments and achieve all of your financial goals.
Budgeting is the subtle art of managing your money. If you excel in this, the rest of the financial journey will feel like a piece of cake.
Your budget teaches you how to control your spending habits. And while you do so, you will discover your potential to save!
If you wish to save your money and invest it in digital gold, download the Jar App today! With the Jar app, you can start investing with just Rs. 10!
Jar App detects your spendings and after rounding-off your spare changes, it directly invests it in digital gold!
Through daily spins, you can even win a chance to double your investment! For a financially secured future and to expand your financial portfolio, try out the Jar app today!