How to Manage our Salary

Managing our salary is one the important skill whether we earn a small amount or a big amount of money, If we are able to manage the or monthly Salary then it will make our life stress free, it will help to achieve our realistic goal and can built a better future. in this article you will learn how to manage your Salary.

How my Salary work

Before managing your money first you need to understand how much amount we are earning and where it goes, you should aware about your salary

Gross Salary – This is the amount which company pay as per your CTC.

Deduction – There are some compliance deduction like PF,PT,TDS etc which is taken from your Gross Salary.

Net Salary – This is the actually the amount which we received in our bank account his is also called Take home Salary.

Expenses Tracking

If we want to control our expensed then first we need to understand and track the expenses that where the hard earn money is going.

1. Write down our Daily Expenses
2. We can use App or templet to note down the expenses
3. Divide the category of expense like food, Rent, Transport etc

Monthly Budget Strategy

Make a monthly budgets strategy the Basic Rule – 50:30:20

1. 50%  for needs (Food, Rent, cloth)
2. 30% for Wants (Movies, Shopping , eating outside etc
3. 20% Savings or paying off the debt money
4. You can change your budget according to your situation, the above idea is to spend your money wisely.

Stop Unnecessary Expenses

Once we come to know about our expenses then we can stop our self for expending money in unnecessary things, hence tracking is very important.

1. We should avoid eating outside frequently
2. Rethink if you are going to buy anything
3. Ask your self If you making and purchase “Do we really need this?
4. Avoid online shopping

Start a Saving Hobbit

People think that saving is what the amount left out after making all the expenses but it should not be like that saving should come first.

1. Decide an amount for savings
2. Start with small amount even it can be Rs 500 PM.
3. Use auto debit mode enable
4. Start SIP

Maintain Emergency Fund

We should kept at least 6 month backup if any emergency came it might be lost of Job or some other medical emergency.

Pay off the Debt

Debt is like the monster which swallow your entire money if you are not managing it properly. It will become a burden and give very horrible consequence in your day to day life.

1. Try to pay your Credit card bill on time
2. Avoid taking any loan
3. Try to pay off the money as soon as possible by increasing the EMI amount

Use of Bank Smartly

1. Open a separate Bank Saving account
2. Use mobile banking to track your expenses record
3. Revie it regularly
4. Avoid keeping too much cash with you

Know about the investment Plan

Money earns money you must heard this proverb, yes it true let your money earn money by investing that amount in different platform.

1. Fixed Deposit
2. Mutual Fund
3. Recurring Deposit
4. Investment in Share market after analysis

Set a Financial Goal

Just think your salary is not a number but also should help you to achiever your dream, so write down your goal and act accordingly.

The goal may be short term or long term

Short Term Goals

1. To buying a new phone
2. Take a Vacation

Long Term Goals

1. Buying a House
2. Saving for Retirement

Review the Improvement

Once we done all the above thing then we should review it on monthly basis so that we can get idea whether our plan is on track or not, is there any improvement required etc.