Hello and Everyone
I think for every household budgeting is an important part. Budgeting is nothing but an exercise when we try to plan the expenses for a certain period. I do it monthly and plan all my expenses for the entire month in the beginning. Usually, there are more expenses in the first week of the month and I try to clear them up but before I do I make a budget for everything. There are a few expenses that are recurring and I just can't avoid them. Some expenses are there which can be pushed for another month so I see the importance and if it is not that much then it is pushed for another month. There is also some ad hoc fund management which is also part of my budgeting because sometimes I do not know what might come all of sudden on my way.
For me, this is an exercise that I do on the first or 2nd of the day to plan all my expenses. This way I know how much funds I need to manage the expenses for the entire month. All the household expenses I manage and the bigger expenses are managed by my family. In my management, I try to split between online payment and also for cash. There are some expenses which I need to pay in cash so for that reason I keep some cash to deal with those expenses.
I'm a household and it is my responsibility to deal with daily expenses and properly plan things. I generally keep a buffer of about 20% to deal with something that might come all of a sudden. I think in companies budgeting is also a similar process where they try to estimate upcoming expenses. Those numbers are going to be so big because companies earn in bigger numbers. For a household the numbers are low but I think there is more variety because multiple things are involved.
I keep a notebook and write down all the expenses that I do in the month and this method is for my tracking. I know some applications are tracking the expenses but I don't rely much because I also spend in cash. I follow the traditional method which you can also say is the manual method to track. Every month I sum up all the expenses I made to see how much money she spent and the numbers are not the same every month. The good thing is that most of the expenses are now online and recently I have also got a credit card that supports UPI payment. I prefer to avoid paying the online money from my bank account and use my credit card if this option is available.
With credit card payments I can keep more money in the bank. I don't see any reason why should I spend money from a bank account when a credit card can do that and anyway I'll be paying it next month so this way my bank balance is higher. I did not know about it and my brother told me to follow this practice which now I like pretty much. My brother is a chartered accountant so obviously he knows much more and way better than me in terms of expenses and money management. I often ask for some tips from him and this is one of the tips that I have got from him recently and it is very much useful in my case.
Ultimately every month I try to avoid overspending and save some money from the planned budget which I invest in Crypto and sometimes in gold. I believe that saving should be done first before planning for the expense and not later once expenses are done. I'm not a pro but still, I try my ways of managing the expenses through budgeting by avoiding overspending as much as possible sometimes it also happens even though I know.
This is my participation post for Initiative: March Monthly Prompt
Check out the above post if you are interested in participating in this initiative every day there is a different topic that is fun and allows us to share our thoughts.
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