How to budget your finances like a pro in 2024? Budgeting 2024

Introduction to budgeting your finances

Budget is not just a fancy word being used in personal finance. It is the ground level for managing your money efficiently. A person with great budget can survive even on 20000 a month and still save some money at the end of the month; on the other hand, a person who spends recklessly without budget won’t have any money left even after making 2 lacks a month.

Here is a great article on purposes of budgeting

In our modern society, corporate companies are desperate to make you send money, and careless spending can seriously affect your long-term financial well-being.

Therefore, budgeting is essential whether you are saving money for your dream car, paying off your loans, planning for that foreign trip, or even retirement. It will provide a clear roadmap to achieve your dreams as easily.

Importance of budget in 2024

We must see budget as the holy grail blueprint that will help us spend our money. If you have a great blueprint and a great discipline to follow the blueprint, then you will eventually become rich no matter what. Most rich people of the world have amassed such wealth over a very long time and anyone you will ask will tell you about their discipline regarding money since they were at a very young age.

Even countries at the beginning of every financial year announce the annual budget because it helps to use all the money effectively without overspending on any particular aspect of the economy or undercutting the budget where money is most needed.

A proper budget also makes spending easier and more frugal as we know beforehand what is needed and how much can we spend on a service or item. We also should know our limits of spending and not need to stress out at the end of the month seeing all the bills.

But note, that as I have said if the budget is a blueprint we also need great discipline to implement the strategy we made. We will discuss about tricks to improve discipline in the future so stay tuned for that!

Steps to budget in 2024

The most common and widely used budgeting rule is the 50-30-20 rule.

To implement this blueprint follow these steps:

1. Know your total income in hand after all the taxes. Do not forget the taxes as it will create a false sense of more money and in the end, you will mess up your budgeting
2. Write all your current expenses for the month including investments. Also, mention the PF from your payslip. Categorize all expenses into various categories. You can do this simply using a book and pen or also using a notion template tracker.
3. Based on your expenses analyze where you can control and where you can free up money to save and invest money. According to famous budgeting principles you can spend 50% on needs, 80% on wants, and 20% on savings.
4. After you defined budgets clearly for each category, try to stick to your budget!! Also saving might get difficult initially as people have a habit of spending impulsively. So try to invest at the beginning of the month itself.

Just keep trying this over a few months and eventually, you will turn into a personal finance ninja.

Conclusion to budget your finance

We learned how important budgeting is; how to do budgeting and slowly develop the discipline for budgeting. Always note that without tracking nothing can be improved in life be it sports, studies, or money.

Hence, try to track your expenses diligently at least once in 2/3 days. It’s amazing if you do it daily.

Hopefully, you grasped the basic principles of budgeting with this post. Try out these steps and any feedback would be appreciated in the comments section.