Why Should You Budget

Why Should You Budget

Can we control our expenses in times of rising expenses and falling economy, for ages our elders have been preaching about the habit of saving from childhood, simple methods used have always been the focal point in establishing empires. The main objective was to plan, budget and stick to the budget so that there is enough fund to use during the retirement years. Why is a budget important? As they, help in the spending of money prudently, there always has to be money going in and out in households.  Setting future goals and utilizing the money for the retirement is one of the main aims today to budget and spend.

  • sorting the money for the different buckets of fixed and variable expenses is a lot easier and helps to keep track of where the major chunk of money is going
  • paying off credit cards, loans planning a long pending vacation, and paying off huge outstanding bills all are evenly spread once budgeted
  • choose a time period even if it is as short as for a week, fortnight or on a monthly basis, knowing the budget will help you to postpone some lavish expenses that could be impulsive,
  • also using any surplus money should be invested wisely like trading in the  automated trading robot  by using the software trading platform BTC Profit, while the robot does the trading, without having to interfere with anything manually
  • frequently checking the bank statements to analyze the card payments done, and cross-checking helps in matching any card swipes that is erroneously charged form the bank
  • using the budget planner is again an art, drawing up a budget, and not going back to check all the expenses regularly will not serve the purpose, when it comes to planning bigger investments like buying a house or vehicle

Using surplus money wisely is the key to plan for the future, putting the money in the bank and forgetting will not work for the planned budget, investing the surplus money either by

 

  • the saving account that gives a high-interest rate
  • invest in liquid funds that will give a higher return than a savings account
  • increase the number of one time contributions in the pension schemes or top up the systematic investment plans

The basis of planning and budgeting is not merely to understand the expenses, but also to know how the expenses are rising when compared to a meager rise in income.

 

 

 

    Vanessa Chambers