It’s the perfect time to pause and reassess your financial plans. The start of a new fiscal year is an ideal time to manage your finances and create a budget to manage your money effectively. Budgeting can seem like a daunting task, but with the right mindset and approach, it can be a simple and effective tool for achieving your financial goals.
It’s the perfect time to pause and reassess your financial plans. The start of a new fiscal year is an ideal time to manage your finances and create a budget to manage your money effectively. Budgeting can seem like a daunting task, but with the right mindset and approach, it can be a simple and effective tool for achieving your financial goals.
Livemint spoke with experts to get back to the fundamentals and share tips to help you be sure you’re on your way to mastering money.
Livemint spoke with experts to get back to the fundamentals and share tips to help you be sure you’re on your way to mastering money.
1) Set clear financial goals
Start by setting specific, measurable, achievable, relevant, and time sensitive (SMART) financial goals. Nikhil Aggarwal, Founder and CEO of Grip, said:
1) Set clear financial goals
Start by setting specific, measurable, achievable, relevant, and time sensitive (SMART) financial goals. Nikhil Aggarwal, Founder and CEO of Grip, said:
Satyen Kothari, founder and CEO of Cube Wealth, says you should start by setting achievable goals, such as paying off debt or saving a down payment on a house. Then track your spending and identify areas where you can cut back.
Satyen Kothari, founder and CEO of Cube Wealth, says you should start by setting achievable goals, such as paying off debt or saving a down payment on a house. Then track your spending and identify areas where you can cut back.
This could mean reducing unnecessary subscriptions or eating out less often, he added.
This could mean reducing unnecessary subscriptions or eating out less often, he added.
2) Budgeting and prioritization of essential expenses
You probably have a budget, but it’s important to make sure you’re focusing on the right costs. “So make sure you’ve paid off your credit card debt and rent before you shop online,” says Nikhil Aggarwal.
2) Budgeting and prioritization of essential expenses
You probably have a budget, but it’s important to make sure you’re focusing on the right costs. “So make sure you’ve paid off your credit card debt and rent before you shop online,” says Nikhil Aggarwal.
Start by setting achievable goals, such as paying off debt or saving a down payment on a house. Then track your spending and identify areas where you can cut back. “This could mean cutting down on unnecessary subscriptions or eating out less often,” he said.
Start by setting achievable goals, such as paying off debt or saving a down payment on a house. Then track your spending and identify areas where you can cut back. “This could mean cutting down on unnecessary subscriptions or eating out less often,” he said.
3) See what you’ve automated
It’s also imperative to regularly review and adjust your budget to ensure you’re meeting your financial goals.
3) See what you’ve automated
It’s also imperative to regularly review and adjust your budget to ensure you’re meeting your financial goals.
Setting up a SIP or NACH delegation to set aside funds for savings and investments is easy, but make sure the assets you invest in still make sense. We often find it important to modify our approach to get the best returns.
Setting up a SIP or NACH delegation to set aside funds for savings and investments is easy, but make sure the assets you invest in still make sense. We often find it important to modify our approach to get the best returns.
Satyen Kothari suggested using tools like budgeting apps and spreadsheets to manage your money and be accountable.
Satyen Kothari suggested using tools like budgeting apps and spreadsheets to manage your money and be accountable.
4) Planning of major expenses
One of the key budgeting tips is to create separate accounts for different expenses such as bills, savings, and discretionary spending. We all have major, predictable expenses, whether it’s a big vacation, a new home, a new car, or a new gadget needed for work/leisure. “It’s important to write these things down in advance and then budget in advance,” suggested Grip’s founder and CEO.
4) Planning of major expenses
One of the key budgeting tips is to create separate accounts for different expenses such as bills, savings, and discretionary spending. We all have major, predictable expenses, whether it’s a big vacation, a new home, a new car, or a new gadget needed for work/leisure. “It’s important to write these down in advance and then budget in advance,” suggested Grip’s founder and CEO.
5) Get expert advice
Perhaps the most underrated tip is to seek help with investments, taxes, and areas where you don’t have expertise or don’t have time to gain expertise. According to Nikhil Aggarwal, it’s often cheaper to get good advice and direction than to lose money and learn lessons the hard way. So if you’re planning to invest, it’s always great to hear from professional financial advisors, insurance advisors, etc. based on your needs.
5) Get expert advice
Perhaps the most underrated tip is to seek help with investments, taxes, and areas where you don’t have expertise or don’t have time to gain expertise. According to Nikhil Aggarwal, it’s often cheaper to get good advice and direction than to lose money and learn lessons the hard way. So if you’re planning to invest, it’s always great to hear from professional financial advisors, insurance advisors, etc. based on your needs.
Learning the art of mastering money through effective budgeting is crucial to achieving financial stability and controlling your future.
Learning the art of mastering money through effective budgeting is crucial to achieving financial stability and controlling your future.
