Effective Budget Management Strategies for Achieving Monthly Surplus

Every month we need to manage our expenses and track the budget we plan to set. We have to manage our expenses, debt and income. This creates a financial discipline habit and also helps to achieve the month end surplus in the bank account. It helps us to save money and, ultimately, you can plan to invest it somewhere.

In this article we are going to understand how to maintain the surplus every month and what the benefits are. Firstly, you need to understand how many income sources you have. If you are self-employed and your income streams are more than two or three, that will help you to plan a certain budget, expenses and debt effectively. But despite how many income sources you have, it is true that you need to focus on these mentioned things.

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The first week of every month is very important. If you have debts or EMIs getting debited on a particular day, mostly the first week of the month, then try to minimize your expenses during that time. The first 10 days are highly important. If your salary is getting credited on the second or third day, then you should be aware. This creates a financial discipline. If you are able to practice this whole year, then you could have a good surplus amount by the end of the year.

Things to do:

1) Try to keep zero expenses during the first week.

2) Always pay off the debt first.

3) Keep a track on the expenses and monitor the first 15 days’ results.

4) Make an effort to save at least 10 to 20% of your monthly income by the end of the month. Undoubtedly, this practice will assist you in reaching the excess funds.

(Disclaimer: Given the input is on an information basis, please seek professional advice.)