You can effectively manage your budget without lowering your living standard.

There are many of us who always think that they have less money. And that’s why those people are always in need of money. If we cannot earn much, then we are left with only one option and that is to manage our budget properly.

There are many of us who feel that living life on a budget means there will be no enjoyment in life. Life will become very simple. Many people see the word compromise with the word budget. but it’s not like that. Living your life according to your budget does not mean that you should reduce your quality of life.

We all buy many such things which do not provide us happiness. This is where the work of budgeting begins. By budgeting, we can distance ourselves from those things which are not important to us and without which we can live.

This is where a concept from Japan can help us. Kakeibo, this is a Japanese concept which means keeping track of your daily expenses. It means the art and philosophy of money management.

If you are also going to follow the Kakeibo method, then the first step is to do some basic accounting. First of all, write down your complete income and then deduct the necessary expenses such as house rent, important bills.

After that you decide how much you want to save. Suppose you want to save 20% of your income, then also minus this amount from your income.

After that divide the remaining money into four parts because then in four weeks of the month you can spend one part out of those four parts.

The next step is to keep your money in different accounts. Because if you see money in your savings account again and again, then you will definitely spend them in any case.

Investing your money in funds is a safe way to grow your savings.

Interest rates have dropped significantly after the 2008 financial crisis. This means that your savings are growing in a slow way. Simply put, you are losing money.

To avoid this, it is important that you withdraw your money from the savings account and put it in the investment fund because here you will get good returns.

Now you must be thinking that you will need a lot of money to enter investing but it is not so. Investing in today’s era is as simple as opening a savings account. If you think investing is difficult, then you probably don’t know how to start investing.

If you are going to start investing then chances are that you will start from an online platform. Online platforms administer your investments and provide you with a variety of tools to help you manage your portfolio.

• If you do not want to be seriously involved in investing, then all you have to do is decide which investment fund will be better for you. Some separate investors invest their money in investment funds. Now you must be feeling that investing can be risky too.

Well, if seen, then yes there is a risk in investing. But if seen in reality, then the main point of investment fund is to reduce the risk. Therefore, there is very less chance that if you are putting money in investment fund, then you will make a loss.

Investing money in investment funds means diversifying your investments, which means not investing all the money in one place. If seen, investing money in investment funds will give you exactly the same feeling that you get after viewing your savings account.