Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Dev

Dev Ashish  |48 Answers  |Ask -

MF Expert, Financial Planner - Answered on Jul 15, 2023

Dev Ashish is a fee-only SEBI-registered investment advisor with over 15 years of active experience in the stock market. In 2011, he founded StableInvestor, a platform for personal finance and financial planning.
He provides professional fee-only investment advisory services to small and high networth individuals in order to help them achieve their financial goals.
Ashish's views are regularly published in national business publications. He has an MBA degree from NMIMS, Mumbai and also holds an engineering degree.... more
Asked by Anonymous - Jul 14, 2023Hindi
Listen
Money

Do you have a budget?

Ans: Kindly elaborate on the question.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Moneywize

Moneywize   |124 Answers  |Ask -

Financial Planner - Answered on Jan 15, 2024

Asked by Anonymous - Jan 15, 2024Hindi
Listen
Money
How do I create a budget and manage my expenses effectively? The problem is I am unable to save much from my salary every month. My monthly income is Rs 45,000. My wife and I together earn Rs 72,000. We have two school-going children aged 7, 12 and their monthly expenses -- school, tuitions, etc -- come to around Rs 15,000. I invest in MFs via SIPs. Together we invest Rs 18,000. The rest of the money goes into maintaining our lifestyle and household expenses. I am 36 and my wife is 35.
Ans: Creating a budget and effectively managing expenses is crucial for financial stability. Here's a step-by-step guide to help you:

1. Track Your Expenses:

Start by tracking all your expenses for a month. This includes bills, groceries, transportation, entertainment, and miscellaneous spending. Use apps, spreadsheets, or notebooks to record every rupee spent.

2. Categorise Expenses:

Classify your expenses into fixed and variable categories. Fixed expenses include rent or mortgage, utilities, insurance, loan payments, and tuition fees. Variable expenses include groceries, dining out, entertainment, and discretionary spending.

3. Create a Budget:

Based on your tracked expenses, create a realistic budget. Allocate a specific amount to each category, ensuring your total expenses do not exceed your income. Prioritise essential categories like housing, utilities, and education.

4. Emergency Fund:

Allocate a portion of your income towards building an emergency fund. Aim for at least 3-6 months' worth of living expenses. This fund acts as a financial safety net for unexpected situations.

5. Review and Adjust:

Regularly review your budget and compare it with your actual spending. Identify areas where you overspend and adjust your budget accordingly. Be flexible, especially if your income or expenses change.

6. Save and Invest:

Given that you are already investing in mutual funds through SIPs, continue doing so. Ensure that your investments align with your financial goals. Consider diversifying your portfolio and consulting with a financial advisor for personalised advice.

7. Debt Management:

If you have any high-interest debts, prioritize paying them off. Reducing debt can free up more money for saving and investing.

8. Cut Unnecessary Expenses:

Identify non-essential expenses that can be reduced or eliminated. This may involve cutting down on dining out, entertainment, or subscription services.

9. Involve Your Family:

Discuss financial goals and budgeting with your wife. Collaborate on decisions regarding expenses, savings, and investments. This ensures everyone is on the same page and working towards common financial objectives.

10. Plan for Future Goals:

Identify your long-term financial goals, such as buying a house, children's education, and retirement. Adjust your budget and investments to align with these goals.

11. Seek Professional Advice:

Consider consulting a financial advisor to get personalised guidance based on your specific situation and goals.

12. Stay Disciplined:

Stick to your budget and financial plan. Discipline is key to achieving your financial goals and maintaining a healthy financial situation.

By following these steps, you can create a comprehensive budget and improve your ability to save and invest for the future. Adjustments may be needed over time, so stay proactive in managing your finances.

..Read more

Latest Questions
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x