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Guide to Budgeting Personal Finance for Women Entrepreneurs

As Dave Ramsey has said, “A budget is telling your money where to go instead of wondering where it went.” Budgeting is important for women entrepreneurs in order to keep control of their money and keep themselves out of the vicious circle of debt. It is about creating a plan on how and where to spend your money and in what proportion.

Here are a few tips and tricks on good budgeting with a focus on female businesswomen:

1. Keep aside 30% of your total monthly income as savings every month for use in emergencies or to fulfil any desires that you may have but can’t afford currently.

2. Invest around 20% of total monthly income in stocks, mutual funds or any other value investing area.

3. Put aside 5% of total monthly income for-

a) Insurance to avoid unwanted financial crisis during medical emergencies or sudden death.

b) Paying taxes.

4. From the remaining 45% monthly income, make sure to take out at least 15% to 20% for paying up your EMIs and use the rest for all expenses.

5. Even when you save a lot of money, make sure to spend it in a disciplined manner and first focus on your needs and not wishes.

6. Install a good budgeting app (like Monefy) in order to keep track of all your spending and then review it monthly.

Creating a budget may be fun and easy but following it strictly is very tough because it requires breaking lifelong habits. So don’t be harsh on yourself and give it some time. Start from realistic savings and then move on to achieve the desired goal.

However, also try to adapt to your new budget flexibly and do not take it lightly. Try and figure out your needs, wants and desires and keep them in separate categories, so you know where to spend your money and where not to. If you still find difficulties in managing your budget, you can always take help through free or paid budget counselling services.

It is also important to know that your budget right now will probably not remain the same two years down the line. Embrace the changes and developments in your life and adjust your budget accordingly! Budgeting will make money matters much easier and help you tide through tough financial times easily.

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