How to Create a Monthly Expense Planner for Happiness and Successful Money-Saving Habits

Happiness and financial well-being are two goals that many of us aspire to achieve. However, these goals can feel out of reach without a clear plan. A monthly expense planner can be vital in managing your finances, ensuring that you balance your needs, wants, and investments effectively. This structured approach fosters successful money-saving habits and brings a sense of accomplishment and happiness. In this blog, I will guide you through creating a monthly expense planner, dividing your expenses into categories, and developing habits to enhance your financial well-being and happiness.

Creating Your Monthly Expense Planner

Step 1: Categorise Your Expenses

To create a practical monthly expense planner, start by dividing your expenses into the following categories:

1. Household: Includes rent or mortgage, utilities, groceries, and maintenance.
2. Lifestyle: Covers entertainment, dining out, gym memberships, and personal care.
3. Dependents: Encompasses children's education, childcare, and elder care.
4. Others: Includes EMI or loan payments, insurance premiums, and miscellaneous expenses.

Step 2: Plan for Your Needs

Your "needs" should not exceed 50% of your net monthly take-home income. These are essential expenses that are necessary for your daily living and well-being. Allocate your income to the following sub-categories:

Household: 30% of your income•

Lifestyle: 10% of your income•

Dependents: 5% of your income•

Others: 5% of your income•

 Step 3: Plan for Your Wants

"Wants" are short-term desires and should not exceed 20% of your total net take-home income every month. This category includes items you would like to purchase or experiences you wish to have within the next few months to three years. Examples include a new TV, a mobile phone, or a vacation.

Step 4: Invest for the Long Term

Allocate 20% of your income to long-term investments. These investments are crucial for your future financial security and include retirement savings, long-term stocks, and bonds. This fund should be for goals that are ten years or more in the future.

Step 5: Enjoyment Fund

The final 10% of your income should be set aside as an enjoyment fund. This fund is for you to spend every month on something that brings you joy. It could be a treat for successfully sticking to your money-saving habits, like a spa day, a special meal, or a new hobby.

Developing Successful Money-Saving Habits

Following this structured plan will help you develop successful money-saving habits. Here are seven habits to reinforce this practice and ensure you remain happy and confident about your finances:

Habit 1: Develop a Successful Money-Saving Habit

By adhering to your monthly expense planner, you develop a disciplined approach to managing your money. This habit helps you save and gives you the satisfaction of seeing your financial goals met.

Habit 2: Enjoy Your Money Habits

Money management should not be a burden. Enjoy the process by celebrating small successes each month. Rewarding yourself helps reinforce positive habits and keeps you motivated.

Habit 3: Involve Every Family Member

Involving every family member in budgeting ensures everyone is conscious of their spending habits. It also fosters a sense of collective responsibility and teamwork towards achieving financial goals.

Habit 4: Document Everything

Write down all your expenses, savings, and investments in a diary. Documenting every detail helps you track your progress, identify areas for improvement, and celebrate your successes.

Habit 5: Consult a Financial Planner

A good financial planner can provide valuable insights and guidance tailored to your financial situation. They can help you set realistic goals, create a comprehensive plan, and make informed investment decisions.

As you receive salary increments, increase your investment contributions by 10%. This ensures that your savings and investments grow proportionately with your

income, securing your financial future.

Summary

Creating a monthly expense planner is a decisive step towards achieving happiness and financial well-being. You can develop successful money-saving habits by categorizing your expenses, balancing your needs and wants, and setting aside funds for long-term investments and personal enjoyment. Involving your family, documenting your progress, consulting financial planners, and increasing your investments as your income grows will reinforce these habits. Embrace this structured approach to money management, and enjoy the confidence and happiness that comes with financial security.

Remember, the journey to financial well-being is a marathon, not a sprint. Take it one step at a time, celebrate your milestones, and stay committed to your financial goals. Here is to a future of happiness and financial well-being!

Conclusion

Implementing a monthly expense planner is a practical and effective way to achieve financial well-being and happiness. You can develop successful money-saving habits by categorizing expenses, planning for needs and wants, investing for the long term, and setting aside funds for personal enjoyment. While some challenges exist, the benefits of financial clarity, control, and goal-oriented savings far outweigh the drawbacks. Embrace this structured approach to money management, involve your family, and consult professionals for tailored advice. Celebrate your financial milestones and enjoy the journey towards a prosperous future.

Taresh Bhatia is a CERTIFIED FINANCIAL PLANNER and a Coach at the Richness Academy. With a passion for guiding individuals towards financial well-being and happiness, Taresh mentors clients including senior professionals, entrepreneurs, businessmen, young married couples, retirees, single mothers, and divorced women. Based in Gurugram, India, Taresh is dedicated to helping clients achieve their financial goals and lead rich, fulfilling lives through personalized financial planning and wealth management strategies.