I have habit of maintaining a budget every month. Budget helps me know where all I am spending and How can I cut down unnecessary spending.
I have a small diary in which I write the expenses as and when done and then copy them in my excel sheet towards the end of the month to analyze.
Almost 3.5 months since COVID breakdown, I noticed a very different/ strange thing in my budget sheet.
May be you would have experienced the same.
Sample of my Budget sheet in February.
|Food items- Fruits, vegetables, Milk, Bread, eggs, groceries||Household items- Toiletries, Detergents, Cleaners||Utility Bills- Electricity, Internet bills, Phone bills, newspaper bills, Netflix,||Support system- Household help, Driver, Car cleaning||Eating out / Ordering in||Shopping- Clothes, shoes, accessories||Petrol||Total expenses|
Sample of my Budget sheet in July
|Food items- Fruits, vegetables, Milk, Bread, eggs, groceries||Household items- Toiletries, Detergents, Cleaners||Utility Bills- Electricity, Internet bills, Phone bills, newspaper bills, Netflix,||Support system- Household help, Driver, Car cleaning||Eating out / Ordering in||Shopping- Clothes, shoes, accessories||Petrol||
It can be clearly seen from the above two budget sheets saving of 36%. I am assuming total expenses earlier as Rs.50000 (average monthly household expense in a metro city) which means I have saved Rs.18000 per month in last 3 months (36% of Rs.50000).
Let’s say I am able to save this 18000 per month for next one year till we start moving out , eating out, shopping, traveling etc.
|Amount saved per month||Invested @6%||Things I can do after one year|
|180000||232000||This can be addition to my existing Emergency fund|
|This can be a booster to our son Hargun’s Higher education which is 2 years down the line|
|This can further be reinvested for our daughter Gurbani’s Higher education which is 7 years down the line – Rs.3.50 lacs will be value in 2027|
|I can do down payment of new car that I want to buy in the year 2021|
|This can add up to our retirement corpus which is in the year 2038 – Rs.10 Lacs will be the value in 2038|
I am sure that almost all of us have saved some amount of money (even if that means saving some hundreds or thousands) that was spent on household expenses, in the last 3 months. The point that I am trying to put across is how about identifying those savings and investing them for your future goals.
On a latest interview of Chai with Hareepatti, our guest Pilot Jassi mentioned ” Money saved is Money earned “. It is absolutely true and the best thing I have heard in the recent past. What have you saved in the past 3 months, and have you invested.
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