To control the expenses is your great ability. With this ability, you can grow your wealth fastly and you can become the leader of finance. Whether it is the matter of personal expenses control, company expenses control or your own small business expenses control, by learning this, you can manage your money better way. Following are the Good Habits if you will make it by practice and practice, it is sure, your all expenses will under your control.
1st Good Habit : To Write Daily Income and Expenditure Account
With this, you will learn to keep the expenses under your control. It will help to review your monthly earning ability and give you signal that your all monthly expenses must be under this income. If you jump out of this, you have to take loan and you will capture in debt vicious circle which will make the situation bad. It will help also to tell the detail which are monthly necessary expenses and which are uncertain expenses whose making advance reserve you can develop the ability to pay emergency fund.
In my case for example,
(A) I started the partnership with my friend but I had stopped. So, I have to give compensation for stopping the partnership because I was facing loss from it but I have to protect my rest assets. When I saw this item in expenses in my past monthly income and expenses statement, I got two benefits
(I) Write Clear in Partnership Deed that I will not give any compensation and I will get right to stop partnership at any time.
(II) If Not partnership dead or not mentioned this rule, I have to make advance reserve for this. or avoid myself from all type friendship partnership for controlling my expenses.
(B) My part-time employee has admitted to emergency hospital and I supported his for emergency treatment with Rs. 10,000 but my income and expenses list is showing it as expense which has no advance reserve. So, my monthly expenses has out of control. Now, I got its lesson
(I) Even if I will keep a future part time employee, I have to keep advance reserve Rs. 10,000 for controlling my current month expenses, otherwise, I commit myself not appoint any employee whether full time or part time.
More you can read 3 secrets ideas of making daily income and expenses account.
2nd Good Habit : To Make Monthly Budget
You have to make Monthly budget. In this budget, you have to limit your spending of your necessary all expenses for you and your family. It may be like following list
Roti Sabji
Milk
Fruits
Desi Ghee
Dry Fruits
Petrol
Internet Bill
Mobile Bill
Monthly Insurance or Pension Plan Bill
Vegetables
Donation
Electricity and Water Bill
You can add more other items and fix the amount which you spend whole month.
You can also add the provision of Reward Motivation Expenses Budget
If you will increase the ability to earn more than your spending for monthly reserve funds and monthly above necessary expenses, you can spend money out of budget whether it may be trip or picnic or enjoy spending with friends for giving your reward for your extra hard work. For example at this time, I am writing at 5 AM and writing more than 30 minutes.
Why?
Because I have to increase my ability to earn by doing hard work. Source of my earning is very simple, if you will like this content, you can go to buy my ebook ( whose ads link, I have given below) for more knowledge and I will earn to sell. If I earn more than my above budget, I will give big reward to my self for out of budget expenditure because I have made the provision of reward motivation budget in my monthly budget and it will be next month.
3rd Good Habit : Develop Substitute to Spending Money
This is great habit, you can develop in which you have to make the list of substitute of cheap of your current budgeted expenses. It is idea of saving from budget expenses.
Eating Out Side = Make Food in Home
Picnic Outside = Go for walk in park or near village or forest
Daily buying milk = Pay milkman after month
Daily buying fruits and veg. = Pay after month
Daily buying food items from shop = Pay after month
Buying things without asking discount = Ask discount before payment
Pay after month is a loan without interest and you can earn same interest.
4th Good Habit : Stop to Invisible Expenses
If you will make the notebook of your invisible expenses, you can stop it and control your all expenses.
Following is the list
1. ATM Annual fees which will deduct your bank balance. Stop ATM card if you need not or stop bank account if you do not need. Recently, HDFC Bank deducted Rs. 590 from my bank balance annual fees of his ATM CARD.
2. Penalty for not dealing with bank for one year.
3. If you will not your bank ATM Machine, bank will deduct its fees from your bank account.
4. If you will keep your money less than minimum balance of bank, you have to pay it fees. Bank will deduct and you will not know.
5. If you will buy or sell the shares, your broker will deduct its commission from your fund in DMAT account.
5th Good Habit : Making the Long Term Plan of Saving Budgeted Expenses
For controlling expenses, you have to develop 5th good habit to make the long term plan of saving your all budgeted expenses. This plan is of next 10 years, you have to save money as RD in govt. banks for taking all infrastructure. Let me explain
For example, you are buying milk from outside with Rs. 50 per kg. You want to save this money. It is not good habit to stop this cost. It will affect your health badly. Instead this, for saving this budgeted spending, you have to long term saving plan
What is milk?
Cows + Their rooms + Their food + their water + their Care employees + Sales Team
Now learn more budget detail of investment
5 cows = Rs. 250,000
2 Employees salary for one year = Rs. 240,000
Building cost Rs. 2,00,000
Land cost = Rs, 10,00,000
water cost = Rs. 50,000
Food cost for one year advance = Rs. 2,00,000
Its total cost is RS. 19,40,000
After this, you can save your monthly Rs. 50 milk. So, you have to save monthly. If you will save every month, Rs. 16,000, you can achieve your goal in the end of next 10th year. No difficult. After this, you will get ability to control your budgeted expenses also.
Like this, you have to make plan of investment of infrastructure of all budgeted expenses and you win to control all expenses.
Following is the expenses whose infrastructure if you will buy, you can save all these expenses.
Roti Sabji
Milk
Fruits
Desi Ghee
Dry Fruits
Petrol
Internet Bill
Mobile Bill
Monthly Insurance or Pension Plan Bill
Vegetables
Donation
Electricity and Water Bill
Conclusion of third habit : Save per month for investment in good projects
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