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Make the most of your monthly budget

The rising inflation has ensured that running a household on a given budget becomes a fine balancing act as people try to ensure that the family’s needs are satisfied with the available money, which seems to be stagnant even though costs are rising. Arnav Pandya tells more.

business Updated: May 30, 2008 21:32 IST

The rising inflation has ensured that running a household on a given budget becomes a fine balancing act as people try to ensure that the family’s needs are satisfied with the available money, which seems to be stagnant even though costs are rising. However a little bit of care and effort can ensure that things are not so bad and that they are able to manage during these tough times.

Break up of budget
One of the first things to do is to ensure that the monthly budget is broken down into various sub parts. This will ensure that fixed amounts are available for spending in specific areas. It is also a tool to ensure that there is no large overshooting of the amount in one area that can leave some other area without necessary funds.

The break up will ensure that in every buying decision the family will take care to ensure that things are within the required limit. For example the overall budget can be broken down as 25 per cent for food, 12 per cent for conveyance, 21 per cent for household items and so on.

Shopping for deals
You can also try to shop for deals that will result in some amount of saving in the budget. A clear distinction is required between items that are large in value and those that are small. Concentration on items that have a larger value will also ensure that the gains are maximised since there is not much of saving in low-value items. A person should also check on the types of deals available so that at the end of the day the cost of the product is lesser than the amount saved.

Large purchases
The process of savings as well as getting good deals there might involve some short-term pain because the benefits of saving on an item may be available only if the individual is willing to buy in bulk.

This calls for planning a bit ahead and then looking at value deals to ensure that the larger purchase will get the necessary discount, which in turn will help in bringing down the overall cost as far as the customer is concerned.