Holding up your first pay cheque is a moment of pride. All your hard work and skills have finally paid off and the pay cheque is your reward. When you initially start earning, you have no idea where and when to spend, how much to save, where to invest. It is very necessary to inculcate a habit of budgeting from the very start. A penny saved today can become a dollar tomorrow. A proper financial plan will help you lay down your earnings and keep a track on it.
Follow these tips to have a sorted financial budget:
Cut down on unnecessary expenses
Lay out a budget for your necessary expenses like travelling, groceries, tax, bills, medicine and other daily requirements. Analyse where you tend to spend a lot of money. It can be an unwanted shopping spree, daily food delivery, or constant clubbing. Start cooking your own meals, cut down on online shopping.
Save save save
Set a particular percentage of your salary as savings. Most people set aside 10-15% of their earnings in to a savings account every month. This is a very important habit to inculcate in your financial plan. Avoid spending all your money; savings are a path to a secured future. You never know what kind of situation may arrive in the future. It’s always better to be prepared.
Set a goal
Setting a goal really helps you to prevent unwanted spending. “I want to save up money and go for a vacation” or “I want to buy a vehicle”. Such goals can work as a motivation. You tend to work hard in order to achieve your goals. It will change the way you look towards your expenses. It brings about a change in attitude as well.
Don’t be too hard on yourself
Yes budgeting and planning your expenses is good but there is a difference between saving and being a cheapskate. Save but don’t be ‘kanjoos’ to an extent where you are not willing to spend on even your daily necessities like milk. Give up Starbucks but don’t skip breakfast and make yourself starve just so you don’t spend money at all.
Treat yourself every now and then. You’ve work hard all month you deserve a relaxing day at the spa or maybe a lavish dinner. Have a relaxing day with yourself which will keep you going and motivated. After all, a healthy and stable mind is what helps us to achieve our goals. Just don’t spend without thinking.
Nothing can compare to the feeling you have when you look at your bank account and look at the amount of money you have saved. Your hard work, budgeting and planning finally paid off. Now use that money to acquire the goals you had set. Go for a vacation, buy whatever you wanted and keep these habits with you until the end.