Wednesday, June 1, 2022

How to Create A Spending Plan

Hey lovelies so I am starting a new series on Personal Finance. 

Will be sharing few insights on the same! 

So I thought to start the series with Creating a Personal Budget. 

It is not easy to stick to a budget but still creating a budget is helpful because it gives you a rough structure to follow up on. 

You can always make modifications according to your suitability and situations. 

How to Create a "Spending Plan" aka Budgeting! 

1. First and foremost make a list of your priorities and what matters to you the most.

2. Set Your Goals! Write down your goals and be clear about what you want to accomplish financially in the next few months and next few years.

3. Determine your income - The net amount after paying taxes, etc.

4. Prioritise and know your expenses.

Write down your fixed expenses, expenses which cannot be avoided.

Write down your flexible expenses which can be increased and decreased depending on your income. 

5. Create your budget! 

Your income should be more than your expenses, giving you a provision to save for emergency as well. 
You can always adjust your flexible expenses to save more! 

6. Pay Yourself First! 

Make sure you protect yourself financially by saving adequately. 

7. Spend wisely as far as your Credit Cards are concerned. 
Don't lap up on too much debt. Remember spending on Cards involves a lot more charges so make sure you consider everything properly before using your cards. 

8. Review your budget regularly and create necessary adjustments. 

Hope you lovelies found this helpful 😊

Stay tuned for more! 


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