Over time, your income will grow, but so too will your expenses. Having a budget is crucial for financial well-being, but it’s also important to review it often.
Budget Handling Policies with the help of Financial Budgeting Tools
At this age, either we income till a limited extent, the source of income being part time jobs like serving at restaurants, accounting in shops, providing tuitions to students studying in lower classes, or through our academic abilities which grants us with various scholarship amounts from the government; or we do not income at all, the only source of money being our parents. Thus, it is very necessary for us to understand and utilise the financial budgeting tools, which might provide us with different ways to keep account of our income or pocket money.
1. Record Keeping
Always maintain a diary which will maintain information about your daily purchases. This will help you analyse your spending habits such that the insubstantial ones are avoided.
2. Wish listing
It is always beneficial to have a list of things which you desire to purchase, shortlisting the ones which are imperative enough, while the rest planned to be purchased in the near future.
3. Money Saving
From amongst our daily disbursement, it should be a practice to avoid the extravagant expenditure in order to conserve your money and keep it safe in some place (e.g. a piggybank). This adds up to your saved money and dispatches the attainment of your next desire on your wish list. Even if you have nothing to purchase, you may as well transfer it to your bank account.
4. Money Making
Financial budgeting tools include money making. At your age, money making becomes a burdensome activity, as you are already indulged in so many activities like education, sports and other extracurricular events. But you should try and manage your time well enough to involve money making activities like conducting tutorials on studies or some specialised activity; or associating yourself with some part time business; which won’t affect your daily routine but still make you some money. This process will always accelerate your contemplation of getting your desired things in hand.
5. Managing Debts
Always maintain a list of names of people and amount of money or service you have owed to others or others owe to you along with proper dates, so that you don’t forget to clear all debts. This proves to be one of the most efficient financial budgeting tools as it helps in managing your sum total.
Points to remember
1. Maintain a budget diary that accounts your expenditures.
2. Try to clear all debts (if any) on time.
3. Make a wish list so that you can plan your investments accurately.