Straddling the confusing cleft between youth and childhood, the age marks an overnight Ascent to Adulthood. So, you decide to chill, putting off financial queries and worries till another day in employee paradise. It is the management that separates the rich from poor, the adults from youth.
This is the most critical money management skill for later life and will help you if you are leaving house to pursue higher studies, be it in India or abroad. It is just a record of incoming and outgoing money and the amount saved. Rs 3,000 a month and have fixed expenses like travel, food and entertainment.
Budgeting is a simple exercise. Take a diary, use an Excel sheet or a budgeting app on your mobile phone, and keep a record of the money you have at the beginning of the month, the heads under which you spend, and how much you are left with at the end of the month. If you feel you are spending too much under one head, you can make the necessary adjustments in the next month.
Find out how much it costs and how much you will have to save every month, and you can calculate the time in which you can purchase it. Alternatively, you can fix the tenure and find out how much you need to save every month. Instead of keeping the money at home or in the bank, opt for a simple instrument like a recurring deposit to make your money grow and it will take less time to buy it.
If you do not know about inflation, you will not understand that the money you save for a goal 20 years away may not be enough by the time you reach it. This is because inflation reduces the value of money and you can buy much less with the same amount. Rs 1 lakh today. Similarly, you will delude yourself into believing that you have a high earning or profits if you are not clear how taxation can eat into these.
Read articles on personal finance, research online, watch TV programmes, attend workshops or seminars. Learn how not to lose money, instead of making it grow. If you do have a regular source of money like monthly allowance or earnings through freelancing, start with simple investments.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath