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"The budget should be balanced, the treasury should be refilled, the public debt should be reduced and the arrogance in public affairs should be controlled."
~ Rose Perrot
Hello Publish0X Community! Welcome to my blog. Today, I have found fantastic topics to explore in LOH Community by @kerrislravenhill. Hence, I have decided to participate in this Contest. There were two topics for this contest. I decided to share my views about the first following weekly topic.
1️⃣ I annually work on my home budget every January and my recent walk through of a major shopping center reminds me how our financial goals can get undermined by the temptation to spend. What are your strategies and tactics to stay on track?
What is budget?
Budget is the soft plane for each penny we have. It is essential to keep a balance between our income and expenses. If income overlaps expenses then savings or investment becomes easy but if expenses overlaps income then debt and financial depression resulted.
It is too hard to control expenses nowadays due to high inflation in Pakistan. My father is in foreign and I have to manage everything at Home. Being Elder, it is my responsibility to fulfill each and every need of my family. Every year, I revised and reviewed our annual home budget in April. Luckily, I have not faced budget shortage issue due to my good strategies and tactics I learned from my father. Moreover, I also have done many online courses on Budget management. After this learning, I 'm well-prepared to share my planing for budgeting annual expenses and income.
There are following tactics that can help you in making effective annual budget plan to save you from budget shortage at the end.
- Design a Budget Plan
- Practice Budget Management
- Analyze Your Budget Progress
These are basic tactical points you can easily manage and follow.Hence,If you are not doing budget calculation then do it now.
Design a Budget Plan
In Budget Planing, it is the most important and critical step in our life. It should cover all our needs, wants and savings. It should be easy to understand and convenient in implementation. There are many types of Budget Plan, you can adopt like envelope system and zero-based budget plan. If we are facing budget shortage every year then we can do online courses as well as some Practical workshops available in our country.
Practice Budget Management
It is famous quote, "Practice makes a man perfect". Without practice, we can't manage anything. There was a time when I was following a yearly budget plan that turned into monthly budget plan and now I 'm doing daily budget plan. If we are daily practicing our budget plan then we shall never face budget shortage.
Analyze Budget Progress
Analysis gives us prediction about shortage and savings of money. There should be one monthly analysis of budget in which we compare each month with previous month. In this way, we can sort out our factors that are causing budget shortage. In the coming month, we can rectify these factors. There are many online applications available where you can do record keeping and monthly budget analysis.
My Strategies for Annual Budget
From consecutive seven years, I 'm making annual budget calculation precisely. I 'm glad to see that I 'm moving towards savings and there is no budget shortage issue from two years. For me, main factor for budget shortage was my uncontrolled wants. I always like to eat fast food like Pizza, Burgers, Fries and Chicken Piece from brand food stalls. These food stuffs are although quality full but costly. Hence, I have a good budget plan to overcome this factor that is providing me good money saving plan. I 'm following 50/30/20 budget Plan. If you have done any online courses then you may be familiar about this budget strategy. My annual budget is 1.2 Million PKR that I have divided into my budget plan likely,
- 50% budget reserved for Needs
- 30% budget reserved for Wants
- 20 budget reserved for payback debt and savings
Budget for my needs
I have 0.1 Million PKR for any month. I try to use it as minimum as I can. In this 0.1 Million PKR, 50K is used into following needs.
- Groceries
- Transportation
- Utility Bills
- Health
- Emergency
Anything left from 50% is used in my wants or I saved them for next month.
Budget for Wants
My wants were greater in the start of my University carrier. Hence, I was facing issues in budget shortage. Gradually, I learned how to plan a good budget. Now, Alhamdolilah, my wants are according to my lifestyle. We should not make any compromise on our wants. I used 30% budget on my wants. From remaining 50K PKR, I consumed 30K PKR in my wants. My wants are Party, entertainment, birthday, family event and fun for a luxury life.
Budget for Savings and Payback Loans
If you have divided your budget very well in your needs and wants then you can easily focus on your savings and payback loans. I consumed remaining 20K PKR into my savings and Payback loans. In Lahore, I don't like to pay bills for regular activities like Cold Drinks, Juices and other Sneaks whose shops are near to my home. Hence, I pay their loans at the end of the month.
Conclusion
Budget Planing is the subject we all should learn it properly. To save ourselves and our family from extra debts and financial burdens we should commit practice for budget Planing. I was the person who didn't know how to design a budget but now I 'm doing well in this subject. I have shared a short guide for budget Planing, I hope it will helped you a lot. If you want to do online courses about Budget Planing then must visit this Website for budget management and learning.
