Monday February 24, 2020
Home Lead Story Manage Expens...

Manage Expenses: Five Ways to Never Go Broke Again

Are you someone that likes living life on the edge, from salary to salary, buying something as and when you set eyes on it, without worrying about your savings, and a "dekha jayega" attitude? That may seem cool -- but it's also a short cut to financial disaster. Walnut App CEO and Co-Founder Patanjali Somayaji lists five ways to ensure you don't go broke. Ever.

0
//
Financial plans
How will 2019 budget look like Pixabay

Are you someone that likes living life on the edge, from salary to salary, buying something as and when you set eyes on it, without worrying about your savings, and a “dekha jayega” attitude? That may seem cool — but it’s also a short cut to financial disaster.

Walnut App CEO and Co-Founder Patanjali Somayaji lists five ways to ensure you don’t go broke. Ever.

Download a money management app to track your expenses

If you have never been the type to track your expenses, now is a good time to start. You can download an app that tracks your spends and set a budget, keep a watch on your upcoming credit card and utility bill payments, as well as see how much you owe or have to get from others. This is the first step to getting your finances streamlined.

Make a plan and set goals for yourself

Set short-term (a few months ahead) and long-term (a year and beyond) goals. It could be anything from taking up a new hobby like learning the guitar, to buying a new phone/laptop/camera, getting married, buying a new house or being debt-free by a certain date, and so on. Based on the plan, break it down into quarterly and monthly goals so you know how much to save, how much is safe to spend and so on. Having a plan will give you an overview and much better control of your finances.

Set up an emergency fund
representational image, pixabay

Set up an emergency fund

Once you’re tracking your spends and have set goals, you know how much money you need to allocate to each of them. You would also get an estimate of your spending pattern and expenses for each month. Based on this, have an emergency fund in place that will take care of at least 6-8 months’ worth of living expenses so that in case of a mishap or a loss of job, you don’t go broke, and have something to fall back on. You can set it up so that a certain percentage of your salary/income each month is automatically transferred to this fund. It could be in a different bank account, a fixed deposit, or even a liquid fund — and most importantly, it should be accessible easily and quickly when needed urgently.

Set limits for your spend categories

Take a look at your spends in greater detail to understand where the money goes each month. Assign limits to each of these categories for the month and see how you’re doing at the end of the month. This will give you an idea of your lifestyle and if you’re spending more than you earn, as well as where you can cut down on unnecessary spends.

Stay debt-free

Credit cards can be extremely useful — for regular spends as well as during emergencies, and over time, with a good payment history, can boost your credit score too. However, if you’re the type of person who cannot pay off credit card bills in full each month or who just pays the minimum amount due, stick to using your debit card or cash, or even a Line of Credit, which has a lower interest rate. Revolving credit on a credit card can be dangerous for your finances, and it can take you several years to repay the entire outstanding amount.

Also Read: Day or Night – Which is the Right Time to Study?

There will always be changes in situations, your current needs and requirements as well as your cash flow, so every 3-6 months, you should re-look at your plan and goals, and modify as needed to stay on top of your finances. (IANS)

 

Next Story

Common Myths About Destination Wedding Busted

Destination wedding in your mind? Know everything about it

0
destination wedding
If you are drooling over the idea of a destination wedding but hesitant to go for it calling it an expensive affair, then that's just a myth. Pixabay

If you are drooling over the idea of a destination wedding but hesitant to go for it calling it an expensive affair or calling it just for the elites, here we are busting the myths.

Sandeep Lodha, Chief Executive Officer, Weddingz.in explains in detail:

Myth #1: Expensive affair

Destination wedding
It is a common perception that wedding planners put together a destination wedding that looks artificial and is far from what the couple actually desires or their personalities. Pixabay

Contrary to popular belief, weddings, if planned well, are not just easy on your pockets, but also end up posing as a great bonding exercise for the family. Moreover, timely planning allows you to avail of a gamut of deals on venue and non-venue services like catering, decor, jewellery, outfits and insulate you from the brunt of inflation. Initiating the back-end work during the off-season also gives you the freedom to choose from the choicest selections at breakthrough prices and helps you execute the much anticipated eBig Fat Indian Wedding’ by eliminating the chances of last-minute price shoot-ups.

Myth #2: Weddings curated by planners lack a personal touch

It is a common perception that wedding planners put together a wedding that looks artificial and is far from what the couple actually desires or their personalities. However, they are professionals who work with the only purpose of bringing an individual’s plans to reality. They have the intention of providing clients an enjoyable and memorable experience, and seamless events leading up to the big day. In order to ensure the same, they make a note of the aspirations and preferences of the couple, get acquainted with their style and personality, and finally bring together an affair that simply is an extension of the couple’s persona and specially curated for them…all while being patient and passionate about your big day. Today, bespoke weddings are a rising trend across India, wherein all elements of the wedding, right from the wedding website, decor, bar, food menu and light settings are specially customized keeping in mind the couple’s interests and hobbies.

Myth #3 : Destination weddings are only for the elite

Destination wedding
If you think that a destination wedding is meant for the elite, then you are wrong about it. Pixabay

In today’s day and age aspiring millennials, with most belonging to the middle-income group are making bold choices with regards to destination weddings. They are not shying away from exploring all sorts of destinations be it beaches, palaces, lakesides and historical forts among others. They opt for guest accommodation close to the venue to make it feasible for all. Besides, resorts and venues offer discounts on bulk packages and cater to end-to-end needs of all attendees, taking away the burden of planning this massive affair from the to-be-weds. The hotel ensures that all the important details are accounted for, look after guest RSVPs, room service, hospitality and F&B provisions in the lead up to the wedding so as to make it a memorable experience for each one to have participated in the event.

Also Read- How to Pack your Skincare for Travel

Myth #4: Running errands personally is the key to a successful wedding

While weddings can be a tedious event involving a lot of moving around, there are new-age online wedding companies offering best-in-class venue and non-venue services at the mere click of a button. These are reliable and pose as one-stop-shop for all your wedding-related needs entailing every element from the venue to Mehendi to the bridal lehenga to wedding planning. Brands like Weddingz.in provide hassle-free planning & booking at guaranteed best prices and also assist you with venues by facilitating guided visits. They also help you pick from a range of options to cater to your preferences and tastes and give you access to over 20000+ vendors across the country. They save you the drudgery of running from pillar to post in the quest for finding the right vendor and make the process seamless by strategically bridging the gap between you and some of the best vendors in the business. (IANS)