Creating a budget and rigorously implementing it is tough, but
it is the best tool to regulate your finances and meet your
monetary goals. What a Budget does for You 1. Gives a meaningful
picture of your spending patterns 2. Alerts you in case you are
living beyond your means 3. Helps identify areas in which to cut
costs 4. Helps set targets to achieve a certain level of income
For a successful budget, here are a few handy hints: 1. Keep it
Simple Identify sources of income and areas of expenditure. Have
broad categories that can easily be identified. For expenditure,
you can have segments like rent, insurance, food and
entertainment, medical etc. Likewise for income, categories
could include interests, salary, bonuses etc. Once the broad
categories have been created, incorporate the details
accordingly. 2. Realistic Targets While estimating your
expenditure, keep it real. Do not write $60 as expenses for food
and entertainment when you know that you will spend over the
limit. Rule out all false assumptions f