What is the best way to budget money? (2021)

 I think you'll agree with me when I say:

It's doesn't matter how much income we have at the end of the f month we fall short of money.

Do you know one-third of the household does not have a budget, that's insane even government uses budgeting for their finances why don't you u it?

95% of the people think budgeting is boring, but I think their way of budgeting is old-fashioned and they should leverage it by using today's technology, ap, ps, and method.

Let's assume your monthly income is 50,000Rs and you have to divide that money to pay for your rent, groceries, bills, debt, insurance, savings, etc.

Here, comes Budgeting to save you from this it helps us to manage money and gives every penny an assigned work which makes it easy and more manageable.

A good Budget helps us to use our cash more effectively and leverage finance's that can help us to come out of debt and save more money.

How to make your first monthly budget?

The r first 30 days try to see where you spend your money, you don't have to do it the www using pen or paper or even Excel.

Amazingly, technology is on our side, you can use budget planner apps.

After expenses see how much money comes into your hand after-taxa from different sources and income.

If your expenses are more than your income try to reduce them by living frugally and try to save some money every month.

Best budgeting method to save money

Many people always ask me what is the best budgeting method? and my answer is always s same the method that you can follow is the best method.

According to my 50/20/30 method is one of the best budgeting methods. This method says that 50% of your income should be used for needs and 30% for wants and 20% for debit and savings.

Use 50% of your income for needs

Needs include absolute essential things like:

• Groceries.
• Rent
• Bills
• Insurance
• Medical bills
• Transportation
• Child tuition school fee

Pro tip:-

If even after using 50% of your income you fall short you can cut your wants and use that.

Use about 30% of your income for wants

Separating wants from need is a very difficult task without being bias. You can live without wants but I advise you to have some fun and entertainment in life otherwise life will be boring.

If you don't allocate some money for fun then it will be very difficult to follow that budget plan.

So, use some money for your fun like Going out, movie, Restaurant et But  don't try to overdo otherwise you will fall short in Budget .Use about 20% of income for debt and saving

This is one of the crucial par parts of budgeting you can use this to pay your debt or you can save for further the long run if, you keep saving and investing you will surely become financially free and you will not be constantly thinking about debt and be stressed about it.

You should ask your 'why ' you want to save make a goal maybe it can be to save for University, new laptop make sure you are specific and take one goal at a time.

How to budget on low-income?

It wasassndo nottototttimpact much if your income is low try to either reduce your expenses and liability, being frugal can help you a lot.

Other, way is to add a side hustle that can add a stream of income and make a budget according to it  . Maybe you can try to learn new skills or get a degree that can help you to get high-paying surely it will take time but, it will help you.

Conclusion:

"A budget is telling your money, where to go, instead of wondering where it went":- Dave Ramsey.

It doesn't matter which budgeting method you follow what's matter is you stick with that plan for a long enough time that it starts to show posa itive result.

If you want to read more about it, read here Make all the right money moves

What is your favorite budgeting method? Write it in the comments section.

Thank you,

☺️