SLC32-W2 || Real Life Problem Solving Challenge: Budget Planning
01..I calculate my total income at the beginning of every month through which I can run my entire month. Then I create separate markets for essential expenses like food, house rent, transportation expenses, education expenses, other expenses etc. through which I can use my money in the right sector. Then I save some money for my future. The rest of the money is used for personal expenses. I review my expenses every month and see if it is going according to the budget. Through which my monthly budget is fine and I can go as per my plan.
- Before planning a monthly budget, I make sure that how much money I can earn this month and how far I am likely to earn. Once the total income is calculated, the next thing I usually do is to divide my total income into different categories based on the needs of the month, other items, various sectors, my incidental expenses. This is exactly how I plan my monthly budget which has been very helpful for me and below is how I follow my budget.
From my monthly list below, you can see how I have divided my total income into percentages and budgeted amounts. It shows how I spend my 30000 taka per month.
Food and my savings take up the most part in my budget because I like to eat well and I have a lot of plans for the future so that I don't face any confusion in the next critical time. This is the reason why I give priority to food and my future savings. So that I don't face any problems later.
- Unnecessary expenses that affect my income are:
Purchasing data and minutes and purchasing subscriptions to various guest platforms with whom.
Excessive eating out, especially when I am not at home.
Frequent traveling, the desire to buy something when I see it.
I often give money to friends and family when they need it, because I can't say 'no' easily when asked.
Going to see a new movie, going to various entertainment spots.
When I see something without any need, I want to buy it, which is why I buy it unnecessarily and later don't use it.
At first, all these expenses seem very small and don't matter! But when I add them all together at the end of the month, I realize that I have wasted a large part of my monthly income on these things, for which I have to pay the monthly fee later. I am trying hard to reduce these unnecessary expenses.
- I save some money from my income for future difficult times so that I don't have to face any problems in my future. It is difficult to earn money, but it is very easy to spend money. I understand this, so I try to save my money.
What I usually do is—as soon as I get my income, I transfer a certain amount of money to my savings account before spending it. Even when I withdraw money from Steemit, I still send a certain part of my money to my savings account.
Mental strategies include:
So that I don't face problems in the future.
Saving to lose unexpected events.
To solve various urgent problems.
Saving 33.33% for future use
Saving is difficult, but these simple savings habits shared have helped me prepare for emergencies. For example, saving has helped me a lot to avoid sudden needs of family and close people, medical expenses, and various unexpected events.
05.Yes, I have created a budget that has improved my financial situation. There were times when I used to do things without thinking about anything and I used to think about the present without thinking about the future. One day my money ran out and I realized my mistake. Since then I have decided that I will not waste it unnecessarily and save for the future.
My real example:
After realizing my mistake, I increased my monthly savings from 5000 taka to 10,000 taka. This has significantly improved my financial stability so far and has helped me reduce unnecessary wastage of my hard-earned money and has helped me to cope with various unexpected events and critical times for which I have benefited.
I would give the following tips to others for excellent budget planning. Through which they can activate their monthly budget:
First determine your total income
Separate necessary and unnecessary expenses.
Keep a part of your income for savings.
Write down your daily expenses.
Try to reduce debt or borrowing.
Review the budget at the end of the month and make changes as needed.
Review your budget frequently so that any errors can be identified and corrected.
Proper budget planning keeps a person's financial life in order and helps them deal with future uncertainties. Keeping a regular record of expenses and developing a habit of saving are the keys to a successful financial life.
invite - @jannat7, @jamal7, @sumon247
That's good to keep a close watch on your income so you know your actual worth and spend accordingly. However, if you make it a habit to save every month religiously, without fail or excuses you will never face financial problems. All the best.
Your post highlight important life skill. Many people struggle with managing money wisely. I really like you divide your income into different categories. And gave equal importance to both current needs and future savings.
I also appreciate your habit of transferring savings immediately after receiving income. This is a practical strategy that help build financial discipline and prepares us for unexpected situations.
I really liked your presentation on budget planning. The habit of allocating expenses by category at the beginning of the month and tracking spending so carefully is truly commendable. I especially found your advice on recording daily expenses and maintaining an emergency fund very useful. Your explanation clearly showed how important savings can be during unexpected situations. The idea of reviewing expenses at the end of the month and adjusting the next month’s plan is also excellent. Thank you for sharing your experience and inviting me to this contest. I haven’t participated yet, but InshaAllah, I will. 😊