Individuals have limited financial resources and they cannot have everything they want. Making a personal budget can help you plan your expenditures wisely. Budgets are personal plans for spending and saving income. Spending usually involves getting a little more of a something by giving up another.


What is a monthly Household Budget?

Every month, people have things they have to pay for. It could be for a place to live, food, education, travel. They also spend money on going to the theatre to watch movies or going fo fancy restaurants. All these costs are called monthly expenses or “Mahine ka kharcha”. Most people have a limited amount of money available, so they have to make choices about how to spend their money. They need to make decisions based on whether they need something or just want it.


Needs V/S Wants

People must make choices about how to spend the money they have. To be a good money manager, you need to distinguish between needs and wants. One person’s needs and wants may be different from another but in general, needs are items or activities you must have in order to live. Wants are things you would like to have but can live without it.

Now that we know the difference, let’s look at how to spend the money one has in such a manner that one can buy what they need first and if there’s any money left it can be saved for other things. This is called making a budget – a written plan for how to use the money.


How to Buy Smartly and as per Budget

If you don’t have enough money to buy everything you need and want, you may have to make choices. This means choosing not to buy one thing in order to have enough money to buy another. Making a choice isn’t always easy.

Before you go on to buy something, ask yourself the following questions and make informed choices.

  • Is what you are planning to buy is a need or a want?
  • Is it cheaper or at a discount at another shop?
  • Are there any similar substitutes which are available for a cheaper price?
  • Is there a better way to spend your money?
  • How can you plan for your money to afford what you want?


From now on, whenever you plan to go shopping, make yourself a budget and plan your spending. If you shop in a planned way, you will realise how much money can be saved and used on more important value-adds.

– Jane Sha

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