4 Tips on How to Track Monthly Expenses
According to Warren Buffet, smart savings implies putting away a certain part of your income before you start spending. Crafting a budget is one of the best ways to ensure both, your expenses and savings stay on track.
Today most people rely on credit or debit cards and online payments rather than cash and since all of these are accessible on mobile banking, it has made it easier to carry out budgeting resolutions.
Here are some smart ways through which mobile banking ensures your monthly expenses are on point:
1. First set a budget
The great thing about mobile banking is that information about all your transactions and relationship with the bank is easily available, making it easy to study your spending patterns. Based on this, decide on a monthly spend limit for yourself after providing for contingencies like bills, emergency, commute, food etc. In the HDFC Bank MobileBanking App, you can also set Standing Instructions for all these payments with a capping beyond which the money will not get debited from your account. At the end of the transaction the MobileBanking App also gives you options to download or share receipts. This can even be used for budgeting next month
2. Maintain a spreadsheet
Maintain a digital version of your budget on your smartphone using an app like Evernote or Microsoft Excel. Also, the HDFC Bank MobileBanking App gives you a one-view summary of all your accounts. So whenever a sum is deducted from your account, having your budget handy means you can immediately correlate it with the app and keep track. This can prevent you from overspending, so that you always have some savings at the end of the month. Checking your account status and credit card spending regularly can help you stick to your budget.
3. Pay attention to savings
Always pay yourself first and foremost. This means that a portion from your monthly income should go towards savings. HDFC Bank’s MobileBanking app can be customised with standing instructions invest. For instance, 20% of your salary can be automated to be deposited in a Fixed Deposit, Recurring Deposit, SIPs and other instruments at scheduled intervals. This amount should be non-negotiable.
It is advisable to maintain separate accounts; one to meet expenses and another purely for savings. You can make immediate transfers between your savings accounts and even check your progress by downloading a mini-account statement.
4. Enable SMS updates
Most banks automatically send a text message whenever an amount is debited from or credited to your bank account. However, in some banks, you have to notify the authorities to get this option activated. If you previously disabled such updates, it is best to reactivate the service so that you get immediate updates in case of any transactions.
For example, let’s say you submitted a cheque for clearance which bounced. The bank charges a penalty for the same from your account. If you get this information immediately, you are in a position to negotiate with the authorities without losing precious time.
Mobile banking can also help you identify spending patterns and highlight the areas where you can save money in the future. By setting up app notification reminders, you can stay on top of all your financial movements. Maintaining all the necessary data in one place – i.e. your smartphone – also becomes easier and keeps you constantly updated.
Truly, mobile banking can save you from major headaches when it comes to budgeting, with a process that is seamless and effective. Download the HDFC Bank Mobile Banking app to stay on top of your expenses and enjoy ultimate control over your finances. With seamless experience, it allows you to truly #BankTheWayYouLive by making everyday activities such as shopping, bill payments, mobile recharge and more easy and efficient.
To experience the best net banking experience, get HDFC MobileBanking App now.