‘A goal without a plan is just a wish.’
We all have dreamt of being financially independent, but did you plan how to be there? Creating a budget is the first step towards any financial journey. You'll be surprised to find out how much small budgeting hacks can add to your monthly savings. But how does one create a budget?
One of the best tools to create and maintain a budget is a budget calendar. So, let's look at what a budget calendar is and why it's essential to use a budget planner.
What is a Budget Calendar?
A budget calendar is a plan that helps you keep track of your income, expenses, and payment due dates. It enables you to understand how much you are saving each month and where are some places where you can cut down your expenses.
A budget calendar need not have a specific format or style. It's a self-evaluation tool, and you can choose to create it in whichever way suits you best.
You could use a standard table calendar and take note of your future income and expense estimates, or you could even use one of the many available online tools that will help you create a small budget for free.
Why Does a Budget Calendar Matter?
The whole idea behind a budget calendar is to be aware of how the money will flow in and out of your pockets shortly so you can manage your plans better.
Maintaining a budget calendar becomes crucial if you wish to take control of your expenses and better plan your savings and future. You can’t manage what you can’t measure, and a budget calendar has proven to be the perfect tool for measuring and managing one’s money for those who use it. It's simple to create and does not require a lot of time to maintain.
You could even make it on your smartphone and manage it while traveling. All smartphones will allow you to set notification reminders so that even if you forget to check your budget calendar for some time, you will not miss out on anything. It's also an excellent skill to have if you often have to manage office events or are involved in any activity that involves multiple transactions within a limited period with a little sum of money.
A budget planner also helps you avoid missing out on your payments, saving you a lot of money on penalties. Being consistent in one’s payment timeline can also help one earn a good credit score, which helps a lot if one is looking to avail of any loans shortly.
A lot of stress can be caused if a person is struggling to manage his finances. Being aware of one’s future liabilities helps them prepare better. A budget calendar can go a long way in helping you save for some significant expenses like a car etc.
Most people end up spending a lot of money on impulse purchases and forget to save for their goals. A budget calendar can also help you maintain an emergency fund, which is a crucial part of any financial plan. It's best to be prepared for rainy days in advance.