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Budgeting: three simple steps to build lasting wealth
Most people know their monthly income but cannot estimate their spending accurately. This gap between income and expenses is the key to savings and investments, says Vishal Dhawan of Plan Ahead Wealth…
The Story in Brief
Most people know their monthly income but cannot estimate their spending accurately. This gap between income and expenses is the key to savings and investments, says Vishal Dhawan of Plan Ahead Wealth Advisors. Behavioural inertia, social obligations and digital payments often make budgeting feel restrictive.
To overcome this, experts recommend three steps: first, build a budget from your own six-month spending data, allocating at least 20-30% of income to savings. Second, automate transfers and investments through SIPs and separate accounts. Third, move surplus money out of your salary account early each month. Chaitali Shah of International Money Matters suggests using two separate bank accounts for income and investments.
The Indian Opinion
The common narrative that budgeting kills joy overlooks a crucial point: the system, not willpower, drives lasting change. The article rightly emphasises automation and self-awareness. But the real test is whether readers can overcome denial about their own spending patterns. Will they check last six months of bank statements? That single action will separate those who build wealth from those who only plan to.
Source: hindustantimes.com
This story was synthesised by AI from the source linked above.
