Expenditure Management

Expenditure Management

While I was delivering a lecture on financial management, one participant asked me – why every speaker address only on financial planning and why not on expenditure planning? That’s where I made a point presenting about expenditure management in all my financial planning sessions. In this article I am going to explain few important points that everyone should understand about managing expenditure.

We get ample rains but if it is not stored or utilized properly then it goes waste and we will have shortage at the appropriate time, correct??? In the same way we may get ample salary or not but still need to plan the expenditure in such a way so that it helps when needed.

Though this 2020 lockdown has clearly shown the difference between luxury and necessity but I still have my own doubts because post complete unlock people may get back to old habits of spending.

Simple points in the expenditure management

  • Have a clear differentiate between needs and wants
  • Always give priority to needs
  • Don’t fall in trap with unknown BRANDS
  • Maintain an excel sheet or a dairy to write down everyday’ s expenditure
  • Review expenditure sheet or dairy once in a week with your spouse and kids
  • Try avoiding plastic money (Credit cards specially)
  • Keep celebrations / festivals little low
  • Don’t feel shy to negotiate (At appropriate place)
  • Use discount coupons / referral bonus / big day offers etc
  • Finally, think before spending

There is a lot of difference between being miser and managing expenditure, many go to an extreme of not buying at all and that is not what is called as expenditure management.

Let me give you an example –

If I feel like eating a Pizza today, I first check the offers online and then place order from the one who has an offer (like buy one get one free or buy one get a drink free or buy one and get a dessert free etc) rather than who doesn’t have an offer. So don’t avoid buying but just research before buying.

If you want to treat your friends / family then first check with the hotels who has offers like come as five and pay for four, 25% discount on group booking etc. In fact with the current food mobile apps you get all sorts of information at one click, use it generously.

Use technology to find out the best offers, research about the brands that you are planning to pick , put your desired product in the cart rather than buying instantly.

By following all these simple steps in expenditure management you can still live the life the way you want.


Manoj Kumar Alapati

Fellow – III Life, AMFI, AFP


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