May 01

How to create an Easy Budgeting Strategy

I don’t know about you, but when my best friend hears the word budgeting, all she can think of is cutting back on dire necessities. Don’t ask me, because I really don’t know where she conjures up weird ideas of going without meals whenever I mention budgeting to her.

I really hope none of you folks have a dangerous imagination like my dear friend, because I am gonna show you some easy budgeting strategies that definitely does not involve anyone going without 3 full meals a day.

Have a Budget Plan

I know it seems to be the most boring task on the face of Earth, but you really gotta do this folks. Sit down with a paper and pencil and preferably with someone who shares your budget like your spouse or partner.

Make a list of all the things that you need to spend money on for the entire month. Don’t forget to add any expense at this point, even if it seems quite trifle to you.

Categorize Your Expenses

Take a close look and separate the dire necessities from the luxuries and extravagancies. No, don’t be tempted to push ‘shopping for your 18th pair of shoes’ to your dire necessities category. What? I am just saying, that’s all, no ill feelings!

Okay by the time you are finished you should have a pretty good demarcation between the 3 categories of stuff. You will find that the majority of the dire necessities category is taken up by items like paying your rent / home loan EMI, car loan EMI, credit card bill payment, utilities bill payment etc. But that is expected.

Time to Check Your Expenditure Pattern

Now take a look at the other 2 categories. Now is the time when you need to refer to your credit card statements for the past 12 months. Is there a pattern emerging? Do you find yourself spending hundreds of dollars each month on clothes/ accessories or stuff like that?

Majority of the individuals, who analyze their credit card statements in this way, usually agree that they have had a major ‘revelation’. Cut back on the unnecessary expenses and if you cannot do it entirely, consider increasing the time duration between 2 such shopping sprees. Like for example, if you have a habit of buying clothes every month, try reducing such sprees to just 6 per year and from then to just 3 per year. Timing these shopping sprees to coincide with festival discount offers and clearance sales is another great way to easy budgeting.

Start a New Way to Earn Money Each Month

Getting a secondary source of income is a great idea, but that is not what I actually mean here. Have you ever considered paying yourself some money each month? Yeah, people call it by many other names like savings, investments etc, but I prefer calling it this way (it makes you want to do it at all costs)

Fix a certain amount of money that you need to pay yourself and make sure that you include it under the dire necessities category. Do what it takes to squeeze this money out of your monthly budget each month and that includes cutting back on entertainment, dining out less frequently or walking to work.

If you stick to all the easy budgeting strategies this month and then discipline yourself to repeat the success every month of the year after that, you will soon become a pro at budgeting!

Apr 27

How Does Millionomics Help Your Financial Health Attain Paradigm Status?

Budgeting and financial planning is what many of us have done, are doing now and will keep doing in the future. There is nothing quite great about this. But if your financial planning has helped you achieve a paradigm status, then that is definitely a huge thing.

Read what over 30+ readers are saying about Millionomics book and what they found most valuable about Millionomics!

I have tried my best to present genuine ideas and tips to help your financial health achieve paradigm status, throughout each page of my book – Millionomics. By the time you finish reading the book, you will realize that I managed to do a herculean task in my life, i.e. I succeeded in achieving paradigm status in my financial health. The best part about Millionomics is that anyone who reads and implements the money management tips described in it can also follow in my footsteps and look forward to achieving paradigm status on his / her financial health.

20+ Points that Millionomics Touches Upon

If you haven’t yet read this book, then you might be wondering how I can help your financial health to become more robust. There are 7 main points that my book touches on and attempts to motivate my readers to achieve in their own lives.

1) Accumulate thrice your annual income by age 40

Fidelity Investments released a report in 2012 that stated that if any employee had managed to accumulate thrice his annual income by the age 35, then it was the first confirmation that he would indeed reach the retirement finish line. You will see in my book, how I managed to get this done by age 38 and you too can follow my example.

2) It is better to save one spouse’s income for dual income couples

Using just one spouse’s income to cover all the expenses and bills and saving the other spouse’s income in its entirety is a huge leap towards building robust savings. You will find out in my book about ways to adjust your expenses in a limited amount per month and save the rest.

3) Don’t allow your expenses to grow with your income each year

Income that you earn at the age of 30 years is definitely much better than what you earned a decade ago at age 20. That is a good thing, but what is not good is allowing your expenses to grow in proportion to your income. Find easy and practical tips in Millionomics to limit your expenses without having to do any major sacrifices.

4) Have a car replacement account

Instead of paying for the installments on a car loan, it is better to keep this money aside to fund a car replacement account. That way you save money that would be otherwise spent in paying interest on your car loan. Check out the book to see how I managed to get rid of my car loan and escaped wasting money on interest.

5) Buy a home that costs within 2- 2.5 times of your income and keep your mortgage within 80 % of home value

Buying within your means is important and this needs restraint. You can see in my book about the process that I put myself through to get a cheaper mortgage rate.

6) Make a will

It is foolish to postpone making your will, thinking that you will make your will before you die, because death never comes announced. Having a will in place helps your descendants to manage their lives better even after your death. See in my book how I created my will.

7) Set aside at least 2 % (or more) of your income for the right causes

If you give charity, then it means you are in full control of your finances. A person who is in full control over his finances will tolerate any upheavals in his financial life in a better fashion than the others who have not yet achieved control. Read my book to see how much money I kept aside for charity.

Would love to know more points and really see how I achieved them day by day, month by month and year by year? How about I let you read the book by clicking here :-) !

These points form the backbone of any robust financial planning and if implemented appropriately, can undeniably guarantee paradigm status to anyone’s financial health. Read Millionomics to get a step by step guide to reach this financial goal.