Published on July 28, 2020 | Blogs
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.
| 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 |
| 15 | 5 | 20 | 15 | 20 | 15 | 10 | 100 |
| 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 |
| 30 | 5 | 17 | 10 | 0 | 0 | 2 | 64 |
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.
To know best investment options. Please feel free to get on touch at [email protected]
8 mins ago
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed mollis faucibus laoreet. Vivamus rhoncus dignissim lorem
8 mins ago
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed mollis faucibus laoreet. Vivamus rhoncus dignissim lorem
8 mins ago
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed mollis faucibus laoreet. Vivamus rhoncus dignissim lorem
