Most people are not thrilled by the idea of having to set a budget. This is because it makes them feel like they have to sacrifice the fun stuff for them to keep within the budget. The purpose of budgeting is to control your expenditures and eliminate any unnecessary spending.
It is a good practice especially if you are looking to save some money. Saving is a good habit to have as it would really be a life saver the moment something serious and urgent comes up. It’s a way of getting prepared for the unknown circumstances in the future and it can also be used to buy an expensive purchase without affecting your current financial status and helps you keep up with your monthly expenses.
Buying a car is an expensive but worthwhile investment. For example, if you’re looking to buy used Maruti Suzuki Swift in Bangalore, you should first find out if it is something you can afford. With a simple online search, you can get a number of sites that are looking to sell all sorts of used cars which in turn can help you prepare your budget accordingly and weigh your options.
Set your financial goals
You should be able to point out the differences between your long term and immediate goals. There are those urgent and necessary things that you have to cater for and then there are those that you would want to be able to afford in the near future. Understanding this difference will help you in creating a savings plan for you.
Note down your income and your expenses
Once you buy a new car, there are maintenance expenses that you have to account for. This means that you have to budget for it after you have catered for all your basic needs. The goal is to ensure that you don’t exceed your income but are still able to have some emergency money on the side.
