Budget - An effective way to enjoy your life

I know that this title would look funny to some people because they think that how budgeting can give us chance to enjoy our life. Most of you think that budgeting means cut off your extra expenses and live your life in limited amount of money. But believe me, budgeting will not only keep you out of debt but also give you more confidence to spend money when you go for shopping and instantly decide to buy something big. It is all about an effective planning.

To start making budget for yourself, first find out your exact monthly income. If you get money every month by other sources also then add that amount too. An effective should also involve your personal debt like credit card bills, any type of loans etc. Plan a certain amount of money in your budget that you should pay to every month to reduce debts. If the month ends with a negative number in your budget plan that means you spent money more than your income and that means you are in loss. But if you are able to end the month with a positive number in the budget plan, then that means you saved money and you are in profit. Your main aim in budget should be to reduce the negative number always and work more on increasing the positive number.

You should also add a saving amount also in your budget. That means you should plan to save a certain amount always at the end of month. On above of this saving amount, whatever money left at the end of month after all expenditure is an extra saving for you. Always work on saving more at the end of each month. These savings can be used in emergency cases or any unplanned shopping. At time of such events, you’ll not hesitate to spend the money because you already know that you are using your savings.

You should not follow a same budget always. Plan a budget every month according to the change in financial situations like increase/decrease in price of any product or if you get a promotion in terms of salary or get better salary job.