Money Money Money: Effective personal budgeting for your necessities & aspirations

As India celebrates 75 years of independence, CNBC-TV18 is joining in and promoting the idea of financial independence through a variety of shows. Today, Money Money Money is talking about effective personal budgeting.

Almost everyone has learnt budgeting for various household expenses as well as managing investments from their parents. However, there is a big difference in the way our parents and we do the same.

Even a little over 10 years ago, incomes were limited to some extent, but there weren’t as many avenues of expenditure. Now, in the last five years, as our exposure to everything global is increasing, there are so many more avenues of expenditure along with the penetration of credit cards and also so many of these ‘buy-now-pay-later’ schemes coupled with the rise in our levels of aspirations.

What is happening is that the personal budgets are going a bit haywire, and personal debt levels are rising. So how do you combat all of this? How can you have an effective personal budget which on one hand, can provide for all your requirements and on the other will not curtail your aspirations as well? Harish Rao, an investment coach at Simple Equation discusses this.