Budget Wisely

How annoying is it to find that you are all out of cash when you need it the most? If you want to improve
your finances, you need to learn how to spend it wisely, and to do that you need to know how to budget
properly. Here are five tips that tell you how to do that. 

   1.  Keep track of all your expenses
Create an excel sheet or dedicate a notebook for this purpose. Keep note of every expense, starting from conveyance costs to restaurant bills. This will give you an idea of how much you generally spend in a month, and allow you to figure out how much you'd have left at the end of the month.

  2. Pay Your Bills on Time
If you are running a household, you will be swamped by bills by the end of the month. You could put notifications on your mobile phone to remind you to pay the bills on time. Why give away free money in the form of late payment fees?

  3. Save a Part of Your Bonus/Raise
If you want to improve your financial situation, you should save the larger portion of the extra money instead of spending it all in one go. In Warren Buffett's words, “Don't save what is left after spending; spend what is left after saving.”

   4.  Automate Your Savings
You could take advantage of the Deposit Premium Schemes offered by most banks, which allow you to save regularly in line with your monthly income stream. This way you are aware that there's extra money in the bank for rainy days.

   5.  Avoid Impulse Buying
Ask yourselves three questions before making any purchase. Do you really need it? Will the expenditure add value to your life? Is this the best price you can get on it? Answer honestly and you'll be able to resist the lure of impulsive shopping.