Budgeting is an integral part of building a financial foundation in your family. Salaries employees often struggle in achieving their financial goals due to overlooking the importance of budgeting in their life. If you are struggling with the same, then this guide will tell you how you can enhance your financial life with simple budgeting hacks. Additionally, you will understand how taking essential home items on a rental basis, helps in avoiding unnecessary expenditure. For instance, if you are holding a grand party in your home and currently running out of furniture, taking beds or sofa sets on rent in pune instead of purchasing is an affordable choice for catering short term requirements.
Let’s explore the basic and effective budgeting practices for salary earners:
Prepare a monthly budget
Preparing a monthly budget helps in tracking your monthly income and expenses. Pen down all your fixed expenses such as monthly room rent, electricity bill or any EMI, that are already fixed to pay every month. Alongside, create a list of non essential expenditures such as spending money on entertainment, dining out, electricity bills, etc. Allocate 50/30/20 rule to your budget as follows:
- 50% for needs
- 30% for wants
- 20% for savings and investment
Try to cut down or reduce the unnecessary expenses such as lifestyle wants and follow the 50/30/20 rule strictly. It will surely be helpful in attaining your financial objectives.
Start savings
Never ignore the saving part for any cost. Start building emergency funds, where you must keep 3 to 6 months expenses in hand to cover unnecessary financial emergencies. Another thing you must do is to invest every month for your future such as a retirement plan or buying a home. The third thing you can implement is to save your additional income. Whenever you get a bonus or receive a hike on your current salary, add the part of the amount of these additional income into your savings as well.
Avoid debts
Try to avoid debt as much as you can. Using credit cards or taking personal loans increases unnecessary debts due to interest rates.
Buying in bulk
Start purchasing items of your daily needs in bulk. Choose the items that have a long shelf life. Bulk items at wholesale prices will help you to reduce your expenditure.
Take rental items
Adopt a renting lifestyle to cut down your expenses. Taking items on rental mode will not let you bear the heavy purchasing amount. For example: you can use an air cooler rentals in pune instead of buying during hot weather months. It is the perfect tactic for temporary requirements. Implement these budgetary hacks in your life to achieve financial greatness. Your financial stability does not depend upon your salary but how well you manage your expenses. Adopting rental essentials also proves best to avoid unnecessary financial burden. Whether you need a scooty on rent for your transportation needs or AC on rent during the hot summer season, all the essential needs of daily life these days, easily available in the market.
