How the Ultimate Budget Calculator Can Help You in India

Maintaining a budget is the key to debt-free living.

Building a budget helps you to manage expenses and keep track of your money. However, not everybody is good at preparing a budget. As the month-end approaches, you might often feel the need for more cash in hand.

Sometimes, it even leads to spending from the savings. If you are struggling with your budget, using an ultimate budget calculator can help you to take control of your expenses.

With a well-laid-out budget, you will not only be able to keep track of your money but also save a lot.

The ultimate budget calculator helps you to plan your financial expenses and avoid budgeting mistakes. It will allocate your income, estimated expenses, and calculate everything to find out how much you are saving or if you are overspending on your limit.

Reasons for Budgeting

A Budget is an estimate and forecast of the income and expenditures. It helps you to plan on how to spend your money in the right way. Budgeting serves two primary purposes- it can help you to live within your means, and plan for the future.

A healthy budget plan helps you to reach financial goals, such as saving goals, as well as planning a major expense such as buying a car or house, or just for paying off debts. Without being able to keep track of expenses, you will not be able to get out of the financial crisis.

The ultimate budget calculator provides you with an estimate of earning to expenditure ratio. Through it, you can scale your expenditures. This will help you to organise your spendings properly.

Budgeting helps to check if you can hold on to certain unnecessary expenses or if you need to get rid of it. Even if you can do a bit of saving without a budget plan, a proper budget plan can help you to increase your savings.

Live Within Your Means

When you seek some financial advisors or go through some online resources, you can see all of them repeat the same thing again, which is the principle of living within your means. It is a simple process where you have to spend only on your necessities and limit your excessive spending.

But is it that simple to follow through? Everyone knows the importance of living within means, and still, they end up in debt.

Plan for the Future

Several businesses are standing for the sole purpose of planning for the financial future. Many people only care about their present and they are happy if they spend their life with all they need and want in their present.

Well, happiness is never permanent. Emergencies may occur at any time. You must be financially prepared for such circumstances. Everyone should have a financial benchmark and a plan to achieve it.

How to Stay Within Your Budget Using a Budget Calculator?

If you wish to be financially responsible and do not want to end up in debt like many others, you should start living within your means. Here are some tips to help you manage your money:

Calculate your Income and Expenses

As a starter, make a list of all income sources and expenses. When you know how much you earn and how much you spend, you can find out how much extra money you will be left with at the end of the month. Accordingly, you can plan if you can afford expenses out of the list.

Try to Make More Cash Purchases

Nowadays, it has become simpler and easier to buy something even when you do not have the required amount in hand. However, it will put you under the burden of debts for a long time.

No matter what happens, you have to pay your debts by every billing cycle or have to end up paying penalties. Instead of buying first and paying later, try to do the saving first and then make the purchase with full cash.

Do Not be a Show-Off

Lots of people fall under this trap. They spend on something they cannot afford, only because their friends and neighbours are doing so.

Maybe your friends and neighbours are living a luxury life or taking expensive vacations, but that does not necessarily mean you have to do the same just for the sake of competing.

Remember they can spend more because they earn more or have plenty of savings, or maybe they are making the same mistake you are about to do. So, just stick to your budget.

Save Whenever Possible

If you want to live a financially independent life, you have to look out for every opportunity where you can make some money, maybe even a small amount. Those small savings can add up to a significant sum at the end. For extending the savings you should:

  • Plan your grocery purchases
  • Consider buying second-hand items
  • Travel on public transports
  • Bring lunch to work
  • Open a saving account that offers an excellent annual interest

Get a Second Source of Income

A lot of people are financially struggling because their income is not sufficient. This kind of situation is worse in developing countries such as India.

In such situations, along with planning a budget, it is also necessary to create a secondary source of income. Or if your current job is not paying much, ask for increments or lookout for a more satisfying career.

Cut Down Your Expenses

Maybe you did your calculation, but are still not able to come up with a budgeting plan that results in a good saving. Then it is probably the time to take a close look at your expenses.

You need to have something that you can cut out from the list or at least reduce the expense on it. It can be anything from spendings on hobbies, internet bills, shopping, memberships, or your maid. Take a second look at those expenses, and you might find something that you can cut off.

Conclusion

As salaried individuals who receive a monthly paycheck, it is essential to manage money properly to stay on the positive end at the end of the month or plan a purchase or a vacation.

Hence, you need to forecast and prepare a budget for your expenses, and try to cut costs, increase sources of income, and increase savings for future activities, or emergency needs.

An ultimate budget calculator can help in this regard with its calculations, and help you look forward into the future, without worrying too much about accounting.

You can also use CRED for credit card bill payment, just so you do not forget them, and compare with your budget to find areas of improvement.


Natraj

Natraj Studied bachelor's degree in finance and business from Telangana University, Nizamabad. A Writer based In India, He has a degree in Charted Accounts and has very knowledgeable in credit repair and Banking Sectors. So, I decided to start a blog and share my knowledge to the visitors.

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