Budget , Save & Invest your money into brighter family future

Investment is really mandatory for any persons to grow their money up wisely but many fails to do so?. Why this happens because we have money but we don't use it wisely or spend unnecessarily for lot of stuffs which we don't need or we don't have proper budgeting plan to utilize our own money. 

When we talk about budgeting, we need to speak a lot that should start from scratch .  we always hear someone saying us this proverb " Penny Saved is Penny Gained ". But to save this penny, what do we need is patience and a small savings mind that should root our interest to conversion. Budgeting can help anyone to plan for any expenses and savings. Planning is a very mandatory for budgeting.

invest to get return plant in bottle

Let me come to the point more straight . For an instance, if we get monthly paycheck from employer or revenue from your business , you should cut-down your expenses which incurs you a lot or found to be negligible . We may use our money for most eccentric needs and sometimes for lavish wants. While categorizing budgets , one thing has to be kept in mind that you are actually dividing your present wallet in hand to specific needs and wants that should hold some savings at least in the month end.

We must in-seed the habit to save some pennies every day after our regular expenses like is this expense really necessary if yes , then what are cutting costs . Like for an instance, if you want to buy household items., those days we compare the prices between shops but now with the help of online e-commerce facility like Amazon , Flipkart , E-bay we can buy the same products at cheaper price and also some times offers and discounts are available. Likewise, for shirts , groceries and also for many stuffs , you can do the proper budgeting plan by comparing the price with the other shops and also check out monthly needs and figure out whats necessary and what's not like what i do below

  • Set your goals , Analyze your budget and also 
  • Calculate your monthly payments like Electricity bills , Water bills and Phone bills
  • Please note down tax and insurance related payments
  • Check out your monthly utilities 
  • Determine monthly groceries and other food expenses
  • Keep a track record of cash withdrawals and miscellaneous expenses 
  • Always check the expenses from the budget you made 
  • Make sure your expenses doesn't exceed your monthly income that will lead you to debt
  • Re-visit your budget properly and also make sure that you are onto commitment.
  • Set the Savings Plan & Aim for at-least 10% savings rule.
All the above steps will help you check out the expenses incurred from the income / revenue you had for last month and make a correction from previous expenses in budget. Always keep in mind that it is good to save monthly and weekly. And it is not that hard or rough task to allot the funds to the expenses in very structured way and try exercising mindful expenses in present and future

You need to nurture that habit from today by thinking about future wants . As we all know that any time emergency wants will happen like hospital expenses and cut down misc. expenses as much as you can. You want to check daily expenses like is this travel necessary ? . Is this outside food really okay ? .  Buying those will help me anything and the questions should come into your mind before making any expenses on anything. 

You can write it down in piece of paper or you can note down your daily / weekly expenses and pay offs in excel sheet or using any apps like Mint , You need a Budget , Acorns that helps you to indicate and alert your limits through pop up notifications when you exceed the threshold limit and it is mandatory for the rest of the members in the family to follow up the principle, as the expenses totally relies on family.
graphical representation of monthly budgeting
You should also check out seasonal expenses and finer timing your automatic budget that should be committed to see the results and the best way to accomplish this is to create a full annual plan that covers the fixed cost and discretionary costs and you should work accordingly to the 12-month projection and if you find any flaws in cash flow changes , you should modify it or change it and those savings could be best utilized for future plannings through investments.

Okay, the above explanation will be helpful enough for anyone to save some pennies to use for future necessities but those pennies will be not doubled or tripled by itself if we just keep as savings with no use. To make it valuable after short span of time , mid term span and long term span what we need is a Systematic Planning for Investment segmentation like Investing money in Mutual funds  under Systematic Investment Planning on monthly or weekly or quarterly basis or as whole in MF cap funds  Investing some amount in stock market on few companies at certain period of time.

mutual fund investment infographic

( Source : Napkin Finance )

As you can see that investing in right funds will help you grow and the power of compounding does the good job for us in future which not only help us to for-seek our growth in future to develop for futuristic wants from our own savings which will make us stronger and happier through proper fund management disciplines regularly. If you practice all these sure it will be not only beneficial to our family but also to our personal development goals through effective manner.

shades of sips

( Source : livemint )