Financial wellbeing is a state where a person has control over their finances and is able to make sound financial decisions to achieve their desired lifestyle, enabling feelings of security, confidence and overall wellbeing.
Use this budget planner to see how you can change your spending pattern to achieve your saving and investing goals.
Budgeting is one of the best ways to keep your finances on track. Ideally, you should spend 50% of your income on needs, 30% on wants and 20% on savings. The most important number is the smallest: the 20% dedicated to savings. If you can achieve that, the rest is easy to manage.
To protect your privacy, the budget calculations will not be saved.
Needs are necessary for survival and you must pay for them. These include rent or mortgage payments, car payments, groceries, insurance, health care, minimum debt payment and utilities. Needs do not include things like Netflix, dining out, impulse buys and so on.
Wants are not absolutely essential. They include eating out, tickets to events, vacations, new gadgets, gym memberships and other impulse buys. Wants are always optional expenses. You can cook a meal instead of eating out, work out at home instead of paying for a gym and save splurging on expensive events for special occasions only.
If you can consistently allocate 20% of your income to savings and investments, you’ll be in relatively good financial health down the road. Savings can include putting away money in a savings account, contributing to gratuity, a provident fund, mutual funds or even investing in the stock market.
Needs
Wants
Savings
Monthly Surplus
Your debt-burden ratio
