What is your favorite budgeting method?

[Kane]

Do you make a monthly budget, what is your favorite method to create a budget? Well, I create a monthly budget and I follow the strategy of 50/30/20 while making my monthly budget. I allow 50 percent of my income for my necessities, I keep 30 percent for my wants and wishes, and 20 percent for saving. Wants and wishes are normally for spending on luxury items or fun activities.

 

[Debashis]

Do you make a monthly budget, what is your favorite method to create a budget? Well, I create a monthly budget and I follow the strategy of 50/30/20 while making my monthly budget. I allow 50 percent of my income for my necessities, I keep 30 percent for my wants and wishes, and 20 percent for saving. Wants and wishes are normally for spending on luxury items or fun activities.

This is a very standard rule which people should follow in order to stay financially stable. For me it's like 50% of my income goes for my needs and remaining 50% for savings & investments in stocks. Whatever I have in my Wishlist need a long time to achieve so I'm just saving and investing for them for the time being. 😄

 

[Kane]

I see some people complaining that they need 100 percent of their income to pay bills, therefore, they cannot save or invest. I think that's just an excuse. You need to design your lifestyle in a way that all of your bills are paid with 50 percent of your income, or no more than 80 percent of your income.

 

[Debashis]

I see some people complaining that they need 100 percent of their income to pay bills, therefore, they cannot save or invest. I think that's just an excuse. You need to design your lifestyle in a way that all of your bills are paid with 50 percent of your income, or no more than 80 percent of your income.

Might be true might be not as well. There are people who earn daily by working as a laborer in a construction site (Daily Wage Workers). They get a very small amount daily using which they have to feed themselves, their children and also buy enough rice and pulses to be cooked for at least 2 meals a day. For them it's not at all possible to save. They are just poor and helpless people.

But yeah, the people who are earning way more than what they actually need to survive, they can definitely save and invest a good portion of their money. Mostly these people compare their life or standard of living with others which is why they end up spending too much in order to match the person they are comparing themselves with. These people will never be happy and satisfied in life.

 

[Kane]

yes, some people are not even able to earn enough money to eat two courses of meals. When you cannot even feed yourself, saving money is out of the question. For poor people earning money is all about feeding themselves. However, in my opinion, and also based on my observation, despite being poor a lot of people are also wasting money. They have some sort of addiction (alcohol, gambling, drug, tobacco), and they waste money on nonsense things (tea, for instance).

 

[Debashis]

However, in my opinion, and also based on my observation, despite being poor a lot of people are also wasting money. They have some sort of addiction (alcohol, gambling, drug, tobacco), and they waste money on nonsense things (tea, for instance).

That's very true. And the sad part is that they don't realize it. And even if they do, they take it casually and end up ignoring it.

 

[glitch]

I try to stick with a 20% savings model but it doesn't always work out that way. I think I mostly end up hitting 10% which sucks because my wife and I are saving for a house. Renting makes it harder.

 

[Good-Person]

I try to stick with a 20% savings model but it doesn't always work out that way. I think I mostly end up hitting 10% which sucks because my wife and I are saving for a house. Renting makes it harder.

I tend to save money, but this time I am planning to save money and invest a bit of money as well. I think that both the things are quite important. I also think that diversification of investment budget is also the key to making the best budgeting method.

 

[Heatman]

The amount of money that you are making on monthly basis is going to play a very big role in determining how much you are going to be spending on any kind of budget that you need to take care of. This is because whenever you are making a big amount of money, it is going to play a part in what you can actually spend and all you can actually save. I just invest 25% of what I earned which is part of saving and use the rest to take care of my responsibilities. If there's a left over, it goes into savings.

 

[Good-Person]

The amount of money that you are making on monthly basis is going to play a very big role in determining how much you are going to be spending on any kind of budget that you need to take care of. This is because whenever you are making a big amount of money, it is going to play a part in what you can actually spend and all you can actually save. I just invest 25% of what I earned which is part of saving and use the rest to take care of my responsibilities. If there's a left over, it goes into savings.

I think that you can invest a small amount of money regardless of how much you earn. You may need to create a fixed portfolio and increase that portfolio gradually each month. This is the best strategy that a person could utilise in order to save money and earn monthly profits as well in case if a person is a trader.

 

[Heatman]

I think that you can invest a small amount of money regardless of how much you earn. You may need to create a fixed portfolio and increase that portfolio gradually each month. This is the best strategy that a person could utilise in order to save money and earn monthly profits as well in case if a person is a trader.

Before you can be able to invest any small amount of money from what you have earned, you must have been able to take care of all the responsibilities that you needed to take care of at that particular point in time because unless you have done that, it is when you can be able to invest or otherwise the money you have is not even going to be enough for you to take care of your responsibilities and not to talk of investing.

 

[Good-Person]

Before you can be able to invest any small amount of money from what you have earned, you must have been able to take care of all the responsibilities that you needed to take care of at that particular point in time because unless you have done that, it is when you can be able to invest or otherwise the money you have is not even going to be enough for you to take care of your responsibilities and not to talk of investing.

The very first thing a person should do is clear all the dues. This is also one of the most important aspect of budgeting. You may not want to deal to see dues that need to be cleared. this also involves paying people at the right time in case if you have had made a commitment with them in the past.