How to Plan A Budget for Your House There was a time when a male member used to earn and a family of 6-7 members used to enjoy the life. No problem, no tension. A father used to spend money on the fees, uniforms, house rent, medicines (no mediclaim policies were there). How to Plan A Budget for Your House
Surprisingly at the end of the month, some coins and rupees remained unspent and thus form a short savings. How peaceful that time was? Today our wishes are becoming our needs. We are not able to differentiate. Huge amount is being spent on wasteful things. Previously we used to pull on with two to three dresses.
Today every member has dozen of dresses. Very surprisingly, now we do not go for repairing. A lightest tear in the cloth, suggests us to buy a new one and throw the existing. Today every member of the family is earning and then too no savings.
The heads of expenses and their cost both have not increased but it is multiplied. Life today is not as easy as it was previously. Purchasing power is now decreasing means, today 500 Rs. Note is equivalent to the purchase power of ten rupee note.
Where your monthly income is spent?
Have you ever made the account of this? How much of your income is being spent on the house. You must know that if you plan a budget for the new house, you can save so much money from wasting.
More to that you can forecast proper cost of so many things.
Table of Contents
What is budget management of the House?
Making budget of the house is more than making the accounts of all the expenses. Through this you can maintain the account that how much you spend from your income and how much you can save from this meager salary.
Planning the budget of the house means that you are trying to make an estimate of your life style. Paying of the bill on time, paying of the debts on time and achieving the target of saving and investments also comes under this. The right way to make the budget of the house is to maintain separate envelops for each head.
Rent, Electricity Bill, car EMI etc. With this you will be able to know clearly that how much money is being spent on each head. And if you get some unspent money, keep it safely to incur on the next month’s heads. You can also keep it aside for saving purpose. When you maintain the account of your monthly income, you will come to know that from which accounts you have to pay the debts and on which account your saving is coming.
Make an appropriate format of the budget
You can download it from the internet. You have to move ahead according to your monthly income and on the basis of that only you can find out the cost. Do and maintain the accounts in such a way that you can find the correct picture. Multiply one week’s budget with 52 and see to it whether it is being fitted with your annual income.
To maintain and managing the best budget for the house:
Distribute and allot the responsibilities
If there are some adult or young generation members in your family, it will be better that you let them know how the run the show with monthly income. In addition to this if there are children in the house, also give information to them. You will be surprised to know that how many ideas children have to share with you.
With this children will also become wise enough to differentiate between the basic needs and the wasteful wishes.
Think something different
Emergencies are natural. And you can feel scarcity of funds in these situations. Does not matter and no panic. Have some tips by which you can spend come and save more.
Recheck your wishes
Distinguish between your meaningful wishes and unnecessary ones. Some wishes which at one time you feel are very necessary, loose their importance and group with the passage of time.
Fix the target
Make a habit of saving something every month and try to feel happy on achieving the target. It may be purchasing of mobile or going on a small holiday trip. One way for this is to avoid using credit cards for every small thing. Also not go for purchasing things on EMI. Our sincere suggestion is to keep away the Card and use it only when it is awfully necessary.
Be prepared for certain changes
Preparing of a budget does not mean that you are trapped in a knot. The budget should be for your economical independence and easiness and not a financial compulsion. A good budget can you prove to be a very big support and power by control over money. Through this you make your expenses more logical and instead of sinking in the worries you can enjoy the life. Yes the most important thing is
It gives you power to fight with economical and financial problems. When a country runs smoothly on the budget making plans, the basis of which is the budget plan of a house. Actually budget helps you in finalizing your priorities regarding the funds to be spent. Even with meager salary, if we plan out the budget we can save a huge amount slowly which can fulfill our dreams if not at one, it can make the base of the dream.
With our constant efforts we can go the extent of saving that can enable us to make good and big achievements. With the budget of the house, your vision becomes very clear about every aspect and thus your mind becomes calculative. Gives you the understanding to spend for the right cause and not waste under emotional pressure.
If you become economical your generations coming ahead will be economical and not miser. This is the need of the hour because today there is trend that most of the young people spent all they have and even go for loan and EMIs. Planning the budget will help in a long way.
– Naresh Wadhwa.