Ah, budgeting! Often at the top of everyone's to-do list, but rarely done 'right'! Now there's no harm in making mistakes along the way when it comes to money — Practice makes perfect after all. But when it comes to financial responsibilities, no one gets off the hook. We all have our bills to pay, obligations to meet, investments to make, personal spends, and a little something tucked away for emergencies. Or do we?
For those who don’t have a meticulously planned money-management strategy in place, this one’s for you. A large part of money management is saving and investing smartly, in addition to spending with intent.
Reasons why you could be finding yourself running short every month
Overspending when it comes to your credit card: Oops! Been there, done that. While credit cards are very much a gift, they could become a curse when not used the right way. If you find yourself running short at the end of each billing cycle, you need to do a stringent review of your spends over the last few months, and evaluate was it really worth it. Over-leveraging your credit line is NEVER a good idea.
Living beyond your means: Peer pressure can be a monster. It sneaks up on us, and even if not necessarily outright, at times one gets caught up in the moment and tends to spend or purchase beyond what is affordable. There’s no harm in indulging in some retail therapy every now and then, but consistent overspending, over time can get you stuck in a hard-hitting cycle of debt. And that’s often harder to break than it is to stick to your spending limits.
Tips to curtail unnecessary spends
Get your expenses in place: Fixed expenses first. Your variable or expected spends come next. And finally, money tucked away each month for your emergency fund and some well-deserved peace of mind. A large part of money management is saving and investing smartly.
‘Multiple streams of income’ is the new black: Setting aside extra money for a rainy day — to invest or even to just indulge — is always a good thing. And well, who doesn’t love making more money!
Keep strict accounts: It helps to list down each and every expense incurred on a daily basis. And sometimes, when you write everything down and go over your expenses — in hindsight, there are things you wish you hadn’t or didn’t need to spend on.
Set up your investments and forget about them: You heard us right. Out of sight is out of mind. Yes, there are instances when you will need to delve into your investments in order to be slightly more liquid, but that’s in case of a planned expense or emergency for the most part.
So, there you have it! Some money tips to up your game. And don’t worry, building a healthier relationship with money is an ever-ongoing process. You will find yourself progressing over time, as long as you set your goals, get your investments in place, and most importantly — enjoy the money you have worked so hard to earn. At the end of the day, it is all about how Not to be broke!
(Dipika Jaikishan is COO & Co-Founder, Basis. This article was co-authored by Rebecca Edwin, Head - Content, Basis)
