One of the most important things in effective personal financial management is to make sure you do not spend more than you earn. To do this successfully, you need a personal budget. A personal budget will act as your personal financial limit to help you manage your financial situation more effectively.
What is personal budget?
Personal budget is basically a personal financial plan that includes both your income or expenses. Based on this set personal budget, you will be able to control your financial flow more effectively. The main purpose of a personal budget is to forecast and estimate your own income and expenses over a certain period of time. For instance, when you plan a budget for a holiday, you need to plan all the expenses of the trip in order to prepare and make sure you do not overspend on the trip.
Why should you plan your personal budget early?
Your personal expenses can be incurred for various purposes and needs, like daily necessities such as food, accommodation, etc. to larger expenses such as savings, investment, debt repayment, etc. If there is personal budget planned, it is very likely that you will not go broke before the end of the month or find yourself in a larger amount of debit than anticipated.
When you have a personal budget ready, you can easily spend and manage your money as planned without facing any issue. You can rest assured that you will always have enough money to cover all of your expenses and plans that you have set beforehand. Additionally, if you set a clear personal budget, any of your debts can also be resolved quickly and in time.
How to plan an effective personal budget?
Everyone would have a different personal budget as each of us has a different amount of monthly income and personal expenses. However, an effective personal budget can be evaluated through its ability to cover all personal expenses.
Below are some tips to help you plan your personal budget more effectively:
– After planning your personal budget, you should have a specific savings strategy to make sure your personal budget is accumulated accordingly.
– Always keep track of your actual spending and compare it with your personal budget in order to come up with the most accurate estimate for your next month’s personal expenses
– Always compare your monthly expenses with your monthly income for appropriate adjustment
What are the available tools that can help you plan your personal budget effectively?
There are several available mobile applications that can help you plan and monitor your monthly budget effectively, such as: Mint, Level Money, GoodBudget, etc.
Although Timo is a digital bank, our Timo app and Goal Save feature can also help you to plan your personal budget and manage your financial situation. With Timo Goal Save, you can set up your budget and activate the automatic recurring contribution feature to have money automatically moved from your Spend Account. In addition to Goal Save, Timo also has many other banking products and services that are convenient and easy to use. Find out more here.
From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN. For Term Deposit Accounts, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity. Existing Term Deposits opened before 5th July 2019 will be continued until its maturity.