How to save without a budget
Kushal has been employed for the past four years and knows that he should start getting serious about the way he manages his finances. He leads an independent life away from his parents. In the past, he has tried to make a budget and live according to it, but finds it extremely restrictive. He dislikes the idea of keeping track of his spending within the limit allowed to him under his budget. He wants to be able to do the right thing as far as his finances are concerned, but is not sure how to do it since budgeting is an essential starting point to managing money. Is there another way that he can manage the situation?
The purpose of a budget is to help develop the discipline to live within one’s means and save money for future goals and needs.
Kushal needs to understand that budgets are recommended as a simple way to manage spending and inculcate the saving habit. All he needs to do is achieve the purpose of a budget without expressly creating one for himself. He should conduct his money matters in a way that his financial goals are reached even without a budget.
Kushal can deal with the need to start saving without a budget by setting aside money the moment he gets his salary. He should move at least 10% of his income each month to an investment, and manage his expenses from the remaining money in his account. After every two years or so, he should try to increase this percentage as his salary rises.
The next thing that he can do is to develop the habit of questioning each expense. He will find that when he does so he will cut back or decide against many unwarranted expenditures.
Developing smart shopping habits for regular, large expenses, such as grocery shopping, will bring down the bill. As he finds the spending
