19 Jun, 2024

Master Your Budget: Effective Financial Planning with SBS Tools

Do you feel like your money disappears quickly, leaving you worried about covering your expenses? Or do you lose sleep at night wondering, if you suddenly lost your job, how will you meet your expenses for the next few months? We feel you! It seems to vanish as soon as it gets into your pocket. But relax! Handling your finances doesn’t have to be this frustrating. With SBS (Saral Banking Sewa), budgeting can be easy and maybe even enjoyable too.So, Why Budget?There is a saying – ‘If you fail to plan, you plan to fail’. Budgeting involves strategically planning your

spending to achieve specific goals within a designated time frame. Before we take a look at how you can create a realistic budget, it is essential to understand why you need a budget in the first place.Here’s why budgeting is important:To Track Your Money: It’s important to know exactly where your money goes each month so that you can estimate how much to keep aside for saving.To Reach Your Goals: To save for that trip to Pokhara or a new phone that you always wanted, before you spend it, you have to save.To Avoid Overspending: To stay on track and resist those impulse buys with your hard earned money. Spending what’s left after saving is the best strategy.To Make Smart Choices: Understanding your finances is important to make informed decisions. Once you understand budgeting, you will be able to explore the current status and opportunities available hence, enabling you to make informed financial decisions.To Reduce Stress: Once you know that you are in control of your finances, you feel more secure. Knowing that you have budgeted well and have your finances well thought, will reduce your stress levels.SBS offers several tools to make budgeting simple and effective. Here are some of them:1. 50/30/20 Budget Calculator:Giving you a big picture of your finances, this calculator helps you divide your monthly take home income into needs, wants and savings. This technique helps you comfortably manage your funds wisely.50% Needs: This covers basic necessities or essential expenses crucial for your well-being such as; rent, utilities, groceries, transportation, and minimum debt payments.30% Wants: This caters to your desires and lifestyle choices, like entertainment, dining out, hobbies, or subscriptions.20% Savings and Investing: This is crucial for building your financial security, allowing you to save for emergencies, retirement, or future goals.By using the 50/30/20 Budget Calculator, you can greatly manage your income towards the things that matter most.2. Recurring Deposit Calculator:To help you with a regular equated amount of savings for your long-term needs, the Recurring Deposit (RD) Calculator is a helpful tool. With the input of below basic details, you can clearly estimate your future returns:Deposit Amount: How much do you plan to save regularly (monthly, quarterly)?Interest Rate: You can choose a Recurring Deposit interest rate offered by various banks.Time Frame: The duration of your RD plan (e.g., 1 year, 2 years).The calculator shows you how much your savings will grow over time with the defined interest earned. 3. EMI Calculator:EMI Calculator helps you understand the impact of a loan on your monthly needs. Here's how it addresses your needs:Loan Amount: Enter the amount you're considering borrowing.Loan Term: Specify the repayment period (e.g., 5 years, 10 years).Interest Rate: This affects your monthly EMI. You can input a specific prevailing market rate.The calculator shows your estimated EMI (Equated Monthly Installment) – the amount you'll need to pay back every month. 4. Fixed Deposit Calculator:Similar to the RD Calculator, the Fixed Deposit (FD) Calculator helps you plan for specific needs. FDs offer a fixed interest rate for a predetermined period. By entering the deposit amount, interest rate, and time frame, you can see how much your money will grow.Additional Tips for Budgeting SuccessSet Realistic Goals: Start with small, achievable goals to keep yourself motivated.Categorize Spending: Divide your expenses into categories like food, transportation, and entertainment to see where you can cut back.Prioritize Needs Over Wants: Ensure essentials like rent and groceries are covered before spending on non-essentials.Review Regularly: Check your budget monthly or quarterly and adjust as needed.Stay Flexible: Be ready to adjust your budget for unexpected expenses.Remember, budgeting is a journey. With SBS tools and these tips, you’ll master your finances in no time. Start your budgeting journey today!