But if you maintain a simple monthly budget, then tax calculation becomes super easy. Most of us pull our hair over taxes during the last 3 months of a financial year, that is, January, February and March. So you can adjust your spending accordingly. Let alone saving for your short term wants.Īnd a monthly budget visually shows you how much money is left at the end of the month. So most of the time, saving for your future remains ZERO. The account opening process is totally online, so you do not even have to visit a branch to open one of these accounts.Įach month you put some specific amount in this account, and you break it when you need to buy stuff that you want.īut if you don’t have a monthly budget, then you don’t even know how much money is going out at the end of the month. ![]() There are numerous online banking services available in India, like the Kotak 811 Savings Account or the Indusind Bank Savings Account or digital bank like the Niyo Bank or a small finance bank like Equitas Bank, where you can open a Saving Account with zero balance.Īnd these kinds of online saving accounts generally pay a higher saving interest compared to regular saving accounts. This saving account doesn’t have to be with a brick-and-mortar bank. Like saving towards the next smartphone or a new sound system or a brand new sofa for the living room, etc. If you are spending more than 10% to 15% of your monthly income on unnecessary online spending, then a monthly budget will visually remind you to cut back on those expenses.Ī monthly budget can also help you fulfill your dreams.Įveryone should have a separate Saving Account focused on saving for their “wants”. If you are earning a monthly income of Eighty Thousand Rupees, and you are paying Forty to Fifty Thousand Rupees in either house rent or home loan EMI, then a monthly budget will tell you visually that you are becoming house poor. Let us understand with an example – how a monthly budget protects your financial health from getting derailed. It protects your financial well being from jumping off a cliff. A monthly budget is like a guard rail on a hilly road. A monthly budget tracks your income and expenses, and it will let you know whether you are overspending or not.
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