All posts tagged: how to reduce expenses

Setting personal budgets

budget

In our lives today, it seems that we are constantly in our running shoes, because all we do is race to fulfilling our duties, necessities and obligations.
Expenses are never-ending. How we wished that we could count the expenses on our fingers, but unfortunately we cannot.

It has become extremely necessary to have a budget made. Having a budget in place allows more breathing space when it comes to financial decisioning. We can actually take a pause, and direct our expenses better, without being hasty about money matters

We will talk about how we can focus on administering our expenses and savings.

  • 1. Track your spends and earns for every month. Figure out what you spend and where you spend. It goes for your earnings too.
  • 2. Also prioritize your bills. The necessities have to be thought about first. Rent, Groceries, Electricity tops the list.
  • 3. Now is the time to plan for your future goals and dreams. Start saving and investing to make the dreams turn into reality. Sit and discuss your goals with your family, and ask them to give in inputs too about what they want to achieve, lets say in the next five years. Such brainstorming is always productive.
  • 4. Create categories for your goals. Tag them as short-term, mid-term and long-term. Your short-term goals could be buying a refrigerator next month, or purchasing a car next year.

    Mid-term goals could be about you wanting to go on a vacation with your family to Malaysia

    Long-term goals would be you thinking about retirement plans and policies.
  • 5. While we have created goals, we need to also assess the value associated with them. Inflation is a factor that can cause an upheaval in our financial dreams. Short-term goals would not be affected by inflation. However mid-term and long-term goals can be affected by inflation. So you need to be wise enough to invest also side by side.
    This will help your money boom too over the course of time.
    Also having a correct estimate on the value of assets is imperative.
  • 6. After estimations, and goal settings comes the most difficult part. Now you have to save for your goals. That means you need to keep aside some money for your different goals. Shelling out money at appropriate intervals will help you in achieving all the goals that you want.
  • 7. A great way to track, monitor and create a more systematic budget is through the innumerable money management apps available in the technical horizon. These apps act as your financial advisors and guides and they accurately advise and calculate spends and earns.
    Some of the most popularly used money management apps are Wally, Mint, Homebudget etc.
    You can get a detailed description of the same at money-management-apps

    Managing money seems like a task impossible. But we assure you that with budgeting and prioritizing your monetary needs, it is a task really easy.

    Image Source:Youtube,build your tomorrow

All posts tagged: how to reduce expenses

Money Management Tips for Freshers!

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While you are young, you do not really realize the role that money plays in your life in latter stages. So it becomes imperative to realize that there is a balance in money management that we need to attain.

Just entering into the shoes of an employee makes you see the world with a different view altogether. You have a different take on everything. Stepping out of your comfort zone to a ground of exposure makes you cringe with anxiety at times. Because financial responsibility now is yours to take care of.

We want to list down some basic yet important thumb rules that you should follow at early stages to plan better in finances.

  • 1. Keep a check on your purchases: Money is yours. Direct your expenses and control your money. Do it either the offline or online way, but do it. Try your hands on excel sheet, or manage money with one of the money management apps. It makes life easier with lesser roadblocks. Be systematic, and assess the costs that spread across areas of essentials and non-essentials.
  • 2. Always build some emergency fund. It is imperative for us to have some financial aid, in case of an emergency. Try keeping aside a small portion of your savings for this section. Parting away from money is painful, but this money will be your friend in need during the unavoidable crisis
  • 3. Steer clear of debts: Debts do become our part of lives, at some point or the other. But it is necessary to keep a check on the debt pile. It should not accumulate enough to push us in the debt trap. Be wary of what you borrow. Borrow but repay on time. Don’t be habitual in using the credit card every now and then, if you cannot repay on time. This just builds pressure that is uncalled for.
  • 4. Shake hands with Tax management: Even though you are in your primitive years of earning, tax management is an art to master. The sooner you come to terms with it, the better it is for your later life. Evaluating the money that gets pumped in by tax machines, helps us to list better our expenses for duties , necessities and obligations.
  • 5. Resort to common sense and practicality: Be pragmatic about your needs and wants. For example wait for a while till the gadget in your wish list becomes cheaper instead of buying it right away. Opt for facilities that are free, instead of going out of the way to splurge on non-necessities. This does not imply that you need to compromise on your basic needs, but this just means that avoid extravagant expenditure. Especially the one that is easy to evade.
You have just embarked upon your professional journey, and we would want to wish you luck for all your endeavours. We want you to enjoy, learn and grow more to become financially able and stable. Happy Earning!
Image Source:Suitqais diaries

All posts tagged: how to reduce expenses

Money Management Apps

Money Management apps

Who doesn’t want a peaceful night’s sleep? But we do not always get what we want. We know for a fact that money matters, but money matters hound us in our sleep.

We have to essay the role of a smart money manager. Balanced budget is a must. But it is not as easy as it sounds. With our minds and finances in multiple places, it becomes formidable task to keep a track of money.

Going through uncountable paperwork and doing mathematics on the receipts is a cumbersome task. This leads to a haywire budget management, and we dread the day of budgeting.

The ultimate resolve to this is going digital. Technology has embedded deeply in our professional and personal life. And it is Technology that helps us solve most of the obstacles in our lives.

The tech masters have devised several apps that aid in budgetary planning, and taking smart financial decisions

We will list down some of the coolest money management apps that fix the financial fixes.
  • MTRAKR – This app helps in managing wealth and keeping a track on what we earn and what we spend. And as the name suggests, the tracking system here helps us to get rid of extensive paperwork. You don’t have to fret over having more than one bank account. This helps in managing multiple bank accounts. It is built beautifully, and has segregated categories of food, utilities etc. People with no finance background or zero bank knowledge can also tap this app with ease. It is fully automated and does not ask for any sort of bank passwords.
  • My Tax India – Calculating and saving tax, taking into account investments and other deductions is a complex task. Here is where My tax India becomes your saviour. It systematically calculates the amount of tax that you need to pay, and you can try out various settings to figure out the optimum level of investment that we need to make. It is user-friendly, and you do not need to be a maestro in finance to use it. So, at the time of tax filing you know what to expect, and you act accordingly. Otherwise you are left baffled with very less time to think through.
  • Wally – Wally is another expense tracker in the digital arena, it keeps a check on your expenses and keeps the spends stacked in categories. One very interesting feature is that it uses your location and categorises the venue, leaving you with very little work. All you need to do is fill in the expenses. Another feature is it’s ability to scan the receipts, relieving you of the stress to type in financial details . You get notified every time you reach a savings goal. Money Management is a much easier task now. We can direct our expenses accordingly.
  • Mint – So Mint basically integrates all your card and bank accounts while keeping an eye on your earnings, spends and savings. This gives in an in-depth analysis of your finances. This is one of the coolest Money Managers in the digital space.
  • Officetime – This is an intriguing application. It is for office goers for whom time is money. It helps you in analysing how productive your time is, and how you can use it more efficiently. This also helps you keep a track on your spends, and generates invoices for expense reimbursements.
  • Homebudget– As the name suggests this application apart from having a beautiful look and feel, creates a beautiful balance in the finances for your family members. It helps you to split bills with your spouse or family members by coordinating efficiently . It also helps working professionals to keep a tab on their multiple income sources.
  • Splitswise – You like going out, partying, or having dinner with your friends? Then this is the app apt for you. This is extremely useful in splitting the expenses. Splitswise, divides the cost systematically if there is a group with joint expenses and it gets tough to split expenses. This is a user-friendly app, and is very popular amongst youth.
  • Digilocker – This app is extremely handy to align and stack your financial documents Starting from your PAN card, Income Tax returns to other Bank documents, Digilocker manages all the confidential documents in an ordered fashion In short DigiLocker acts as the superhero in disguise.
So what are you waiting for? Tap the app that suits your needs.
Image Source:telegraph.co.uk

All posts tagged: how to reduce expenses

How to handle finances right after marriage?

marriage-finance-changes

Youngsters before marriage find themselves perplexed when finances are being spoken of.

There is an absence of savings or a very much required emergency fund. Since their money management habits are haywire,it becomes essential that they get improved and systematic after marriage.

If the financial loopholes are not taken care of , then these become one of the biggest obstacles for both the individuals.

We would want to talk about some simple yet essential measures that can help you out during this phase of your life, Hence,we have jotted down some significant points of financial management after marriage. Have a look. Some ways to handle finances after marriage:-

  • 1. Plan for the uncertainties: – Even if you are stable in your careers and have a good salary, you both need to have a structured financial element in mind. Emergency won’t knock the door and come. Couples today are not really equipped to combat these emergencies, and are under constant stress. Unexpected illnesses, accidents, layoffs can cause a great deal of pain, and hence it is advisable to save a share of your salary over a period of time. This certainty helps to deal with the uncertainty in a much better way.
  • 2. Smart Spending and Smarter Investing : When you are married, you both need to be accountable for what you spend and invest. Spending is inevitable, as it is the simplest answer to both necessities and wants. You cannot blame the other person for the spending. The bottomline is both of you spend, but on different things, and hence there is a need to set a budget.It is required that both of you get on the same page, and focus clearly on the lines of investment. Be it Investing for next year or for retirement , investment planning is the need of the hour. There are many ways of investment for long and short run both. Seeking professional advise also helps.
  • 3. Set achievable financial goals: Having a foresight helps. Deviate from your monotonous life for once, and give considerable thoughts to life after 5 , 10 or 20 years. Anybody can earn money. But judicious usage of money is an art to learn. You just don’t want to walk on a path, there has to be set destinations. You should chart out your career dreams, lifelong goals, financial expectations together and set time to achieve and fulfil them. Summarising the important and less important ones and then prioritising them is the right course of action.
  • 4. Combining or Not combining accounts: So while planning finances, the question of having a joint account or a separate one arises.

    Both the options are working models. Let’s talk about them in detail.

    a)Separate accounts: – When you keep money totally separate, everything(rent, mortgages, necessities etc) has to be split . Also you need to evaluate what you spend, be careful of not spending too extravagantly, as the entire monetary responsibility shifts its weight towards your partner. Also, you need to plan to spend from each account to gain the tax benefits on Home loans, EMI, Investment Proof etc.

    b)Joint Account – In this case, you would put money in a single basket, and use it to pay off and spend. However this requires financial coordination and a mutual agreement on expenditures. You need to get to the common grounds of spending, because if there is a lot of deviation in spending patterns, then there is a lot of room for monetary imbalance and arguments.
  • 5. Checking Financial history – It is important for you to discuss financial history with your spouse and vice versa. Being aware of the financial history, such as the use and number of credit cards, credit scores, way of spending paints a clearer financial picture. So in case one of you has a poor credit score, then having a joint account becomes is not a smooth decision to make. So decision making is highly influenced by financial arrangement of both individuals.

    Managing Debts and Saving: It is good to combine accounts when the debts are cleared off in single or both accounts.

    Saving after the wedding is definitely a good idea, but saving before is essential too. We suggest you to open up a savings account before marriage for setting money goals beforehand and having a vision of future expenses. Both the individuals should invest a portion of their combined income after marriage, and let the account grow. I hope we have helped you in making better decisions. Happy Wedding !
Image Source:listenmoneymatters.com

All posts tagged: how to reduce expenses

Factors impacting your CIBIL Score

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         Nothing is worse than having a bad credit score, as it can tarnish your social image. How do I improve my credit score, what are the factors which hit your CIBIL score hard and what should we do to avoid them, are some of the common difficulties, most of the people go through but they lack awareness or ignore it. This ignorance is the cause of the diminishing CIBIL score.    Many people are stuck with a bad credit score due to their poor credit behavior of the borrowers or the lender’s mistakes. Having a good CIBIL score can help you get loans easily. Below highlighted are some common mistakes which should not be ignored. (more…)

All posts tagged: how to reduce expenses

Common Money Management Mistakes, Freshers commit in their Early Years

Money-mistakes Many young adults in their 20-30s make money mistakes due to lack of complete knowledge, resulting in serious blunders further. It is important to understand their finances, and keep a proper tab on it. Check out these 5 common money management mistakes freshers wish they realized in their Early years. (more…)
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