Financial Literacy

Budgeting for Beginners

Who doesn’t want to get a hold on their finances and save up? Sadly, only a few can truly manage their finances to success. While almost everyone knows that proper budgeting entails checking your total earnings and breaking down all your expenses, the sad truth is that most of us spend more than what we earn, despite common sense. Even if we have enough, we tend to splurge on things we feel are “rewards,” so much so that we end up at financial zero and with no savings—or worse, in debt.

So how can we properly handle our finances? While we acknowledge that it’s easier said than done, here are a few practical things you can do to budget:

1. Don’t forget to pay yourself first

Most people tend to break down all their expenses and allocate each expense a certain amount derived from the total earning. If there’s something left, they put that leftover money into savings. If there’s none—which is the usual case—they end up not saving at all.

Instead, why not try making it a habit to pay yourself first? How? Do the reverse of the traditional method of budgeting and allocate a certain amount of money into your savings first, with the mindset that you’re paying yourself for your hard work.

Your future you will thank you!

2. Have a budgeting buddy

Most of us tend to deal with people who are always stressed about money. This could be a family member or a significant other who you always splurge on things with, or you end up borrowing money from each other when the other’s out. Instead, try turning that person into your “budgeting buddy,” so that you can help each other out and keep yourselves in check when it comes to spending. If you have someone that you can talk about finances with, that can make a huge difference in how you go about your own personal finance.

3. Take advantage of budgeting apps.

In this day and age, there’s a wide range of financial apps that can help keep your budget on track. If you find it a bit tedious to track your expenses manually and budget regularly, then an app should do the trick. All you have to do is go to the app store, and click “install”! Just input the data, and the app will do the math for you. The best part? Apps, like ours, will also provide you with valuable insights on how you spend your money, allowing you to adjust your spending accordingly.

4. Evaluate your spending habits

With a budgeting app in hand to provide you with insights on your spending habits, you have no excuse not to evaluate your expenditures. Always track your expenses and at the end of each month, evaluate where you’re overspending. Doing so will keep you on the right track, helping you spend your money appropriately.

5. Have a digital bank account

Not fond of waiting in line at a bank? What’s good about most banks nowadays is that they have online apps that have budgeting and savings features. These apps are designed to make your life easier, allowing you to transfer funds from the comfort of your own home. Take advantage of this technology and get yourself a digital bank account to help manage your finances.

Budgeting isn’t easy… but we can help!

Personal financial management is never a walk in the park. However, try your best to follow some of the valuable financial tips outlined above. With discipline and the right motivation, you can get a hold of your finances, build up your savings, and ultimately keep yourself debt-free.

Do you think you need a budgeting buddy? Check us out! At Nava, we aim to educate you on financial literacy and help you with our conversational assistant, Navi.

Navi is available 24/7 and monitors spending to provide up-to-date guidance on how to save money. If you want to have someone help you save, sign up for our mailing list to learn more!

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About Aman Thind

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