Six Ways to Eliminate Spending Leaks from the Monthly Budget
BENGALURU: Maintaining monthly budget is a tough task for every middle-class family. It has rather turned out to be an inevitable necessity to make a leak-proof budget to easily sort-out extra burden without facing any financial problem at the end of the month. The perfect budgeting decision can be made into reality by committing to all the compulsory expenses while getting over with irregular expenses and stopping unnecessary expenses to conveniently face any instant emergency circumstances. Here presenting a list of six distinct strategies, compiled by The Economic Times that can help you in making the perfect leak-proof budget:
Use Budgeting Applications or Envelopes Method
Most of the times monthly budgeting decisions are marred with spending leaks because of inconsistency in its implementation. Proper budget planning needs tracking down of expenditure of every single penny. A proper note for each expenditure can be made by mentioning it in diary or on cell phones. Envelopes can also help in proper planning by maintaining individual envelope for each expense category like, children’s fees, insurance premium, utility bills, etc. By this, leaks can be easily identified at the end of the month. With the evolving technology, many budgeting applications are available for smartphone users to easily plan finances. Some of them are mentioned below:-
i) Money View: The application automatically tracks bills from company messages and notifies incase of missed bill payments. It provides a suitable way to manage credit cards and bank accounts.
ii) Mint: - This application not only tracks monthly income with the expenses but also analyzes the spending habits of the individual and then provides tips for saving money in their spending priority.
iii) Mvelopes: This application divides monthly budget into 25 envelopes (free version) and then traces expenses according to the preferred envelopes. If one envelope’s money is over then there is an option of transferring money from other envelope or you can wait till the next month. Free version allows integration of four financial accounts.
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