Budgeting in the Age of Instant Gratification

Nowadays everyone knows how to earn money but very few people know how to manage it and in this modern world where everything has become digital our expenses have also become digital. Like we just swipe the bill and the money is gone. We don't even understand what we have purchased and why we have purchased it. This is the biggest problem when we don't track our monthly expenses and then at the end of the month when we check our account balance, we only feel guilty and disappointed because our salary gets released 10 days after it is received and we don't understand where the money went.

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We must explain our financial behaviour to ourselves and show that we do pulse buying in any situation like a birthday or any sale going on somewhere. Whether it is just shopping in Vodafone or spending on small things, their impact on our budget is very high. A budget should be made at the beginning of every month whether it is handwritten or made in any app but the main expenses should be fixed like rent, grocery bills savings and after all this, if something is left then it should be spent on the wanted things or else not.

Many people think that savings means keeping the money after having a child. But actually, savings is a disciplined activity in which the money should be kept aside immediately after the salary is received. Never take this approach of saving whatever is left at the end of the month, it doesn't work. This is a big mistake. People compare themselves with their friends or colleagues that if they bought a new phone, they should also buy one. If he went on a vacation, I should also go. Competition hollows out our minds and empties our wallets.

Social media has created a fake pressure where everyone wants to show the best in their lifestyle, but in reality, they are winning based on credit cards or loans and we think that we are the ones left behind, while the truth is that the situation is different. If we take care of small things, starting with cancelling unnecessary subscriptions, skipping dinners out, taking care of fuel in local travel and taking a pass while shopping online, then we can control our expenses very well.

Many people think that a credit card is an easy solution when they are short of money, but that credit card creates double tension the next month because when the due date comes, interest is charged. Then it is understood that the money brought for comfort has now become a vote and financial freedom does not only mean earning money but also understanding your expenses. When you know how much you are spending and where then you feel stronger and are also confident about the future.

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In the modern world, everything is fast and everything is also stamped but we have to keep our decisions in control. If we work with discipline then money will be saved every month and plans will also be successful nowadays financial apps have become very helpful, which you can track your daily spending and can show in the form of a graph where the most money is going. He will automatically know his pattern and next month he will also get a chance to break the pattern.

Apart from savings, creating an emergency fund is equally important because life is very predictable and an emergency can arise anywhere. If we are not financially prepared at that time, then both tension and happiness increase. There is a simple habit. If you do cash transactions only through a card or UPI, then spending money becomes like that. But when you do cash transactions, then every time you have to think before withdrawing money and think that it helps you to save money.

Investing is also an important lesson. Money is not just saved but it also gives financial stability by investing it. In today's time, options like mutual funds, and PFF SIP are easily available. It is only important to have knowledge of them and invest money in the right place and when your money starts earning, then you feel that you are living smartly, just depending on salary is not the only option. Passive income and smart investing are also important. That is why if today's young generation invests in financial literacy, then the future can be secure.

Often people feel shy. By sharing your pension problems, it seems that financial planning is a boarding topic. It is a flight scale and just like cooking or driving, one should know how to handle planning as well. If we keep an open convention about pensions in the family and discuss financial matters with our parents, then conflict will be less and there will be more clarity. All these people will be on the same page and planning will be better.

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There is another important point. Patience, not everyone gets everything at the same time. But if we can pause for a while and prioritize our course, then we can live more peacefully and there is no stress and money is not everything in life. But without money, one can also sleep peacefully, spending can spoil everything. Therefore, we should bring some discipline and control our emotions and we can also give ourselves a better and happier life in the end, I would like to say just one thing money is there today, it may not be there tomorrow. But if you learn to handle it today, then tomorrow you will not have to beg anyone and this freedom is the best luxury of a model life.

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RANJAN02

Posted Using INLEO