Thursday, April 28, 2011

I am on a budget..

Budget is what I have heard since childhood. I used to hear from everyone around and wonder, even if people had money, why wouldnt they spend it. After all money is meant to be spent. Once I grew up I understood, why wouldnt anyone spent all the money that they had. When I started working, I was so happy that I had all the money to myself to spend and in whichever way I want to. I was not answerable to anyone. But hold on, my Mom told me to keep a curb on the expenses. She would always advise how much I should spend and how much I should save for the rainy day. I never used to understand the rationale behind it but still I would listen.

So while I saved for the holidays, there was always a small amount which would go as saving - not meant to be spent at all. The money would get accumulated and invested. This would result in some bit of saving as well as my share of having fun, which I had always wanted. This continued for a good period of 10 years. Now after that when I finally decided to buy a house, came the big blow.. All the money that I had accumulated as part of my savings were gone in one shot. Plus like everyone, I had to take a home loan. I wanted to reduce the home loan as much as possible. So I used up all my money invested in all the possible places. Even I have withdrawn all my PF amount which normally people save for their old age. Not that this has resulted in my home loan being a small amount, but yeah whatever contribution my savings could make, I did that..

Now the result is I have absolutely no money as part of savings.. :-).. All that I have is my salary coming in every month, part of which happily goes in my home loan. Now looking at the loan, which gives me nightmares, I want to get rid of it as quickly as possible. May be in another 4-5 years. This can again happen if I reduce my expenses. So now to get rid of my home loan quickly plus to pay for the EMI, a budget has been drafted. I dont use my card so happily, the way I used to. I have decided on a certain amount that should be spent every month. The money is withdrawn in the beginning of the month. All the bills, shopping would be done with that much money ONLY. No use of card, unless it is absolutely necessary.

I have to keep a check on my shopping for shoes and tops, which I love to buy. There is a check on the number of times I eat out, the places where I go to eat.. Also the number of movies that I watch in the theatre.. I also check whether a particular vegetable/fruit is worth the price that I am paying for.. Not that I didnt do it
before, but now I am more vigilant.. I dont even know when will I be able to take my next holiday.. All this means, that now I am surviving on a budget..

3 comments:

Seena said...

I was in the exact same situation few years ago..But I learned how to stay on Budget from my spendthrift behavior..

Psych Babbler™ said...

Ah the budget. I'm in the process of trying to save at the moment given that I'm in somewhat of a similar situation.I had about 10000 saved last year but then my car got written off and I only got 3000 back in insurance which meant in order to get a new used car, I had to dip into those savings. Sigh. Trying to start from scratch again. My problem of spending is books and coffee though! Really need to curb that! :P

Rambler said...

After six months of work, [around 9 years back], when I looked at my balance I was shocked. I had no clue where the money had gone, considering I dont really shop or eat out much. Thats when I started keeping accounts of every Rs spent, it worked wonders in keeping a check on where I do spend, and should not spend :)