Wish you All a Very Happy New Year, 2017. May this year be more fruitful and comforting, this is my prayer for everyone, including me.
We all have heard the adage, "LIVE LIFE TO THE FULLEST" & the song pictured on Rajesh Khanna, "Zindagi, Ek Safar Hai Suhana, Kal Kya Ho Kisne Jaana" has allured people to live life Bindaas, keeping the worries aside and many seriously follow this track.
Even I follow the same but seriously not on terms of Finances, else we are bound to stuck somewhere in life.
Finances is something that one needs to plan according to the needs and for emergencies, that doesn’t mean that you can’t spend on superfluous things or on luxuries or on the cravings that one has.
The cravings of spending differs from one individual to another. Some are keener to spend on entertainment, clothes, books, travel, leisure etc.
The basic needs of food, basic clothing (not required every month), rent, education, health can’t be curbed, it has to be fulfilled and further we need to keep stack of amount for the emergencies and tough times.
The basic & emergency needs are more or less same for all individuals only the capacity to spend depends on one’s earning & lifestyle. The variation is more in the context of lifestyle expenses and there comes the need to BUDGET to overcome the habit of over spending or buying for no reason.
How I move with my Finances:
As the message beeps in, a wide smile spreads that finally the amount is in. We know that we are bound to receive each month, still the mind lurks for the beep, isn’t it amusing?
I maintain an excel file, wherein the expenses are mentioned in one row, just I need to add in the break-up of amount as per the needs, wherein maximum is to make the pay-out to different categories such as grocery items, newspaper, flat maintenance, petrol, fees & medicines.
A fixed sum is subtracted from the major part to fulfill these basic needs, and then it comes the investment part, wherein we need to pay for the premiums, regular deposits, SIP’s & MF’s. All are not monthly investment but I spare the amount on monthly basis to be rid of huge expenses at one time. This way, it is planned and we don’t need to take tension to accumulate the required amount.
The amount that is spared after meeting both ends that care of superfluous needs, I say superfluous because even without spending on these items, we can survive. Still we meet those expenses to taste the better taste of life and to live life to the fullest and we earn to live a better life so we need to spend on our hobbies too.
In my list, to savor cravings, my list tops with clothing, my wardrobe is full still I indulge in buying clothes for myself and family and I have weakness for fabrics which includes, bed sheets and curtains too along with clothes.
Second position is of books & Wi-Fi & Dish TV package, wherein I spend a fix amount each month. I have kept these in luxuries n comforts item, because in case of financial crunch, we can do without it.
Third comes the contribution in Social events, at times, it becomes compulsory needs but if I accumulate amount under this head every month, then we don’t need to feel the heat of it.
Fourth in my list is Travel and now after getting freed from responsibilities of kids, I keep a part of it to travel and this craving of Travel has taken lead now and I am spending a good amount of it, so I save an amount to meet the needs of travel.
This is my way of planning budget, what is yours?