"What am I doing! How am I running out of money near the end of every month? I don't understand where all the money is going!" If you are also confused and struggling to manage your monthly budgeting, then this is for you.
How To Manage Money Smartly
Because Today, I will tell you exactly what mistakes are causing you to run out of money before the end of the month and how you can easily start saving money as well as manage your expenses by doing monthly budgeting.
So let's find out the solution for this life problem,
Problem 1: Not keeping proper account of income and expenditure A few days ago in a one-to-one video calling session, I asked one of my clients exactly how much money he spends every month? He guessed that it is around 25-30 thousand rupees per month. Then I asked him to keep track of his income and expenses for the next month using the Walnut app. When I spoke to him again after 1 month, I found out that by keeping accounts this month, he found out that he had actually spent Rs75,000 this month.
It means that he used to spend 3 times the amount he guessed as his monthly expenditure. And the most concerning thing is that he didn't even know it himself because he had never before keeping track of it. If you make the same mistake of not keeping track of your monthly income and expenditure, you will never know where your money is going.
Problem 2: Not doing monthly budgeting you may not know what monthly budgeting is and how to do it. Because it's not taught in school or college curriculum, nor do our parents teach us about this. As a result, you may not realize the importance of monthly budgeting. Or even if you understand the importance of this, maybe you are too lazy to do it regularly. Or maybe if you do keep track of your income and expenditure, you write it down manually. As a result, it becomes almost impossible for you to calculate the exact percentage of money spent in each category in the last one or two years. And as a result, it does not benefit you much. And frankly speaking, it is very difficult to continue writing accounts regularly for a long time using a physical notebook and pen. So, you are not able to plan your monthly budget.
Problem 3: You spend first and then try to save To you, saving means spending from the monthly income for the whole month and then saving the rest, if there is anything left in your hand at the end of the month. And since you don't do monthly budgeting, most of the time your pocket runs out of money before the end of the month. And as a result, when you have zero savings you have no option left except to borrow money from people to manage the budget somehow until the month ends.
Since you have chalked out your mistakes, now let me tell you what to do, as soon as you get the money or the salary at the beginning of every month, so that you can easily solve this life problem,
Solution 1: Keep track of income and expenditure using a mobile app After watching this video, your first task will be to download the Walnut app from the link given in the description of this video. And if you are watching the video from Bangladesh, then download the money app. Because you can't use the walnut app from Bangladesh. Now as usual every night after dinner when you eat or spend your time watching the mobile, first of all, do not open Facebook, Whatsapp, or YouTube, instead please open this app and enter all the transactions, that is earning and expenditure, that you have done throughout the day right from the morning. It is a very easy job, earning means when money comes into your pocket and expenditure means when money goes out of your pocket. It will take you 5 minutes each day to do this. But this 5 minutes of hard work every day, may save you 5,000 rupees a month or a year. Even after that, if you are not willing to do this little thing, then I have nothing to say to you.
Solution 2: Open three savings accounts most popular principle of monthly budgeting is the 50-30-20 principle. That means you will spend 50 percent of your monthly income on what you need, that is, essential or useful things that you need. For example, buying food, paying the electricity bills, house rent, etc. Next, 30 percent of your income will spend on your wants. For example, buying fashionable clothes, shoes, watches, etc., or getting an ott subscription-like amazon prime or Netflix. And last but not the least, you must invest the remaining 20 percent of your monthly income. So to be able to follow the principle very easily and effectively, you need to open three savings account in three different banks. It is not a big thing to do. Because, now if you want you can open zero balance savings account in different banks within a few minutes through video KYC, sitting at your home. How to do it, you can find dozens of step-by-step tutorial videos, if you search on YouTube. If you are an employee then you must have a separate salary account already where you receive your salary every month. But if you are a businessman or self-employed person and you do not have any other savings account yet, then you need to open a 4th savings account where you will deposit all your income. You can name it a salary savings account. Then at the beginning of the month, whenever the money is deposited in your salary savings account, you will first transfer 50% of the money to account 1, that is, need a savings account. And now in the era of phone pe, google pay, and other online net banking or mobile banking platforms, transferring money has become easier than ever. So from this need savings account you will spend all the month as per your need requirement. Then transfer 30% money to account 2, that is, the want savings account. You will spend on luxury and other non-necessary items from this want savings account. Then transfer 20% money to account 3 that is, the investment savings account. You will make all your investments from this investment savings account.
Solution 3: Invest first and then spends soon as you get the money at the beginning of the month, transfer 20% of it to the investment savings account, it means you will invest the money at the beginning of the month before even you start spending a single rupee. Remember, you must invest first and then spend the rest. And at the end of the month, if you have some money left in the need or want a savings account, then you can also transfer that money to this investment savings account to invest it. Because the more money you can invest, the sooner you can achieve financial freedom. Now the question is how or where to invest? There are many options to invest in. Such as fixed deposits, gold, bonds, mutual funds, equity share, real estate, etc. So among all these, which option is best suitable for your investing need? The answer to this question depends on a number of factors. For example, 1. How old are you? 2.How much money do you have to invest? 3. How much is your monthly income? 4. What is your investment objective? 5. What is your current financial situation? etc. So if you want to know in detail about this, let me know by commenting below, then I will make a separate video on this topic. However, the investment option in which I think everyone should invest in the mutual fund. If you want, you can go to the link given in the description below and just submit your name and mobile number and open an account in Zerodha, to easily start investing in mutual funds from the comfort of your home. Lastly, always remember that "Small change can make a big difference”. Thanks for watching! More wisdom, more solution, better life!
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