Saving and budgeting

Summary of Saving and budgeting

As our topic of interest is saving and budgeting. These are very important thing that everyone should have some knowledge about saving and budgeting. To setting a budget there are three simple and easy steps. The first step is that you should know about where you spent the money. According to our income we should plan the budget. You should track your budget for two months. Because of this you avoid to buy the unimportant things and you should save money for some tragedy or any event. For saving money this is important that we have some motive or to fulfill the dream. When we decided for which thing we are saving then it’s easy for us to save money. The second step is that you should attach numbers.

Examine that how much money you need for your aim and made a plan that how much money you should save each month to get the goal. You should choose a bank wisely, you should have all the information about the bank and their interest. As some incident is happen like your roof top is leaking. So if we save money then we immediately stash the money from the bank and solve the problem. How much money you want to stash is depend on the circumstances. Here we also know about our net worth as it define as what we own is the net worth and minus that we owe. The formula is as follow

Assets- liabilities= net worth

To see your progress over time you also want to track your net worth for this you should use the online program with the help of this you also see your past transactions. For manually you should add your all assets. Here is the following things like home market value, your life insurance the value of your car and many more like that.