Budgeting is the most important and foundational financial topic when it comes to personal finances. Budgeting is basically how you will spend your money and prioritize where to spend it. It’s important to plan ahead of time so when time comes, you know your budget and can handle money better!
Let’s say you recently got a pay day. Everything is going just great and you suddenly remembered that you have to spend that money on your basic monthly expenses! Worst of all, you don’t have a budget plan. But don’t worry, it’s really easy to make one! First off, calculate your monthly income. Then try the 50/30/20 rule as a simple budgeting framework. This rule is used by many others, and known to work the best. Allow yourself to spend up to 50 percent of your income for your needs, like groceries or your bills. Leave 30 percent of your paycheck for your wants, like eat outs or any extra shopping. And lastly, commit at least 20 percent of your income for savings or any debt repayment.
There are so many different ways to make a budget plan, from using various budgeting apps or even as simple as the 50/30/20 rule! It’s important to know how much you spend and set limits. Therefore, it’s essential to always know your budgets
Mission Saksham 