Family life depends upon savings and there debt has ruined it completely because most of the people are habitual user of debt transactions on daily bases. To equalize your transnational activities, try to make budgets out lines so that you may have a true picture of your budget capacity. Budgeting is not a technique that can be adopted easily; it is a kind of habit must be generated to make your family and social life better and better.
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There are many kinds and techniques that can be used by every one, these smaller steps can change your life completely in all possible way. These steps are stated as under.
Step1: What is your salary?
The most important question to make your plan is that “What is your salary?” because it is very important to be familiar with this question. With this you can create your
- Strength of budget
- Availability of money
- Real cash in hand.
Step2: What are your Expenses?
Second question is about expenses because expense is really important. Expense can damage your budget as well, if they are not properly maintained. Check that
- Which is your important expense in this month that are fix each month
- Forecasted expense for natural mishaps
- Expected expense of this month
Step3: Group them?
Make a simple sheet or diary and group your expenses
- Utility bills
- House rent
- Payments of arrears
Step4: Pay there?
When you have grouped them, then create your available payment to each group. Make first payment to your important group
Step5: Add them up?
After doing all such activities, calculate your total expenses. This will help you to understand that
- How your budget is strong enough to do such expenses?
- How can you mobilize your activities for whole month?
- How much your budget is cost effective?
Step6:Saving or Bankruptcy ?
After deducting expenses from your salary, you will find positive or negative results. If your budget is positive then your budget is strong enough to save some thing, if result is in negative then you have scarce salary limit to generate savings. You may reschedule your budget as well.
Step7: Your excess amount?
If you have positive result then you can use them in many ways like
- You can invest it in some thing (purchase shares and bonds)
- You may purchase something for your home
- You may invest it in insurance.
- You may save it
Step8: Carry forward?
Make a category in your diary or sheet entitled with “Carry Forward saving”. There you may write down some comments about your saving and can add it in your next month salary by mentioning this amount on top of the page entitled with “ Brought Down Saving”
Step9: A complete budget?
When your budget has been completed then check out all activities and make sure that you have such limitations over your cash this month. If you can restrict yourself from all other activities such as shopping, visits to museums, night parties, charities, and expenses on college/school canteens. Think you have limitations then you can be succeeded.