Budgeting Tips for Excellent Financial Health - FlexSalary Guest Blog (1)

1. Budgeting Tips for Excellent Financial Health ‘Finance’ is a term that even the best of you can often fail to navigate in the right direction. Irrespective of what other areas of life, you may have your expertise in, budgeting is something that many still struggle with. If you want to maintain excellent financial health, then standalone budgeting is considered the best fit for many people. Because adapting to basic practices of budgeting is vital. But in this process, you may still be wondering how to maintain excellent financial health? Don’t you worry! In this write-up, we shall discuss more on this topic. What is ‘Budgeting’? Budgeting is defined as the process of expertly managing how your money is earned as well as spent. For example, if you are earning INR 30,000 every month and at the end of every month, you are left with INR 3,300 after all the expenses and not having a clear idea of where your money was spent, chances are that you might have not budgeted nor tracked your expenses correctly. Both of which have degraded your financial health. But on the other hand, if you had created a mindful budget, you would not only have gained insight into where the money was spent but you would also have determined how much money you were able to save. Thus, based on this example, you can understand that budgeting is vital as it helps manage your financial health in a better way. To gain a better understanding of budget, here are the 4 tips that you need to follow: ● Adhering to the pay cycle - If you are budgeting for the first time and doing it only at the beginning of every month and not at a later date, then this discipline can be considered a common misconception followed by many. It does not necessarily mean that you should adjust the date of your budget only at the beginning, rather you can try doing it as per your pay cycle. For instance, you are getting paid on the 15th of every month, so, instead of making a budget right from the 1st of every month to the 31st, you can extend it up to the 15th of one month to the 15th of the next month. This way, you will not only stick to budgeting your pay cycle but also help in managing your expenses easily as well. ● Use a smartphone - Due to the advancements made in FinTech technology, there are many personal loan apps available that help in streamlining all your

2. transactions, categorising your spending and guiding you on how to be prepared for planned expenses. These apps are available in both the Google Store as well as the App Store. ● Write down your budget - Another misconception that most first-timers commit is creating a budget in their mind and not writing it down on paper. While it can seem easy to stick to a mind budget, in reality, many things can just skip out of your mind. Without writing down the budget on paper, it becomes difficult to keep track of your expenses, because you may come across many unforeseen expenses on a daily basis, which can go unnoticed. Hence, writing down your budget on paper, can immediately increase your chances of not only meeting but also keeping track of all your transactions. ● Automate your investments - The greater aim to create a budget is to save for your future. The idea of investing your hard-earned money is interesting, but in reality, many people fail to accomplish investment goals, because they lack the investment methods to do it properly. Earlier, you had to manually invest your money, but today, due to the advancement in technology, you can effortlessly automate your investments at regular intervals. For example, you can set up a monthly SIP of INR 500 (or) INR 1000 every month on your chosen date, and the same will be deducted from your account automatically every month. This way you are not only investing money wisely but also saving for a greater goal for the future. Conclusion Budgeting can seem a difficult task during your beginner stage, however, if you diligently follow through with the above-discussed steps, you will surely get a hang of budgeting in no time. In case you fall short of funds due to unexpected expenses, you can get a loan from top lenders like FlexSalary. This lender has a reasonable interest rate, and you can repay the money in flexible payments at your convenience.