YOUR SALARY HAS BEEN CREDITED — isn’t this the best message we receive every month? Our mind starts wandering how we can put every penny to use as soon as our bank accounts get refilled. And more often than not, we are all guilty of overspending and exceeding our budget (Bet you can’t disagree on this!).
The ongoing pandemic has given us many opportunities to save money. A lot has changed around us lately. Owing to COVID-19, most places are shut, leaving us with minimal things to do, very few places to visit — less things to do means less things you spend your money on. For those with out-of-hand spending habits, this can be the perfect time to start building your savings. Reserved funds can give us choices when we feel like things are falling apart.
So, here is a question: What is the first thing you do when you receive your paycheck?
Do you spend it impulsively? Or do you build up your savings first?
If you fall in the first category, maybe it is time for you to reconsider your approach. The art of striking a balance between expenditure and savings is an essential skill to master, irrespective of your age. After all, your savings ensure financial security and provide a safety net in case of any emergency.
Here are some simple steps you can practice to ensure maximum savings on your monthly earnings.
Save for a rainy day- Put aside a chunk of money in your saving’s account to build an emergency fund. It doesn’t matter how much money you save, it’s all about building the habit.
Follow the 50-20-30 money mantra!- Up your personal finance game with this classic rule. Spend 50% of your salary on living expenses, the next 20% on travel, entertainment and food and the remaining 30% on compulsory savings.
Create a budget and swear by it- Make buckets for all your major and minor expenses — gas, electricity, rent, EMIs, yearly insurance and so on. Budgeting helps you gain control over your finances and prioritize your expenses.
Automate your savings- Saving is behavioural. If you lack self control, automate it. Under the automatic savings plan, instead of manually depositing funds every few weeks, you can fix a specified portion of your paycheck to be automatically deposited into a bank account on a periodic basis.
Define need vs wants- Do you really want the thing you’ve been eyeing for a while? Ponder over this! It may seem like a tough decision in the beginning, but consider downsizing on your wants if you think they’re taking over your budget.
Pay off high-interest debt- The amount paid as interest is lost money. It does not help you increase your wealth. So pay off your debt at the earliest.
Make use of expense tracker apps- Money tracker apps can help you monitor your spending trends. It keeps your expenses in check by reminding you to settle bills and avoid penalties thus reducing unnecessary hassles.
So starting this month, add some momentum to your money and take your personal finance game to the next level using these simple tips. Minimise your overspending to maximise your monetary wellbeing.
Do let us know how you plan your monthly expenses in the comment section below. 🙂
Harshita looks for stories in almost everything. A hopeless dreamer and a movie buff, she is known for laughing at her own jokes and being proud of it. She has a thing for sarcasm, wit and everything savage. A supporter of the underprivileged, she will totally judge you for being rude to the waiter in a restaurant. Loves conspiracy theories and myths and prefers dogs over humans. She is an impulsive writer and hopes to write a book someday.
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Comments
Annamalai Murugesan
August 22, 2020
Buy gold, land and crypto currency.
Start a supply chain management and product based company.
Investment in very good innovations startups.
Annamalai Murugesan
August 22, 2020
Buy a gold,crypto currency and land.
Start product based company in supply chain management and product type.
Invest in more innovation or fund it, only to good innovations.
Guruprasad P.B
August 19, 2020
I’ll save money only for my future use because after the age of 35+ it’s a better time and the knowledge and a well known experience to start a business or to Invest in stocks, or to save for our future generation.
Siddhant sharma
August 12, 2020
Hi, I will spend my money on useful things.
swapna
August 12, 2020
Ahh , money is like triggers , first 10days makes you to see the heaven , next 10days makes you to see the bridge and final 15days makes you to see the heaven , so its a interlink ,so we should definetly not follow the three rules which i mentioned, so lets start the actually way of money , hoping for best from next month onwards
Jane Vijetha Coutinho
August 11, 2020
Today being my first day at Byjus and after signing in this is the first thing that I read so definitely I would start saving from my first salary that I receive . Thanks for the effort taken in writing this for us .
Abhishek Raghuwanshi
August 8, 2020
Its great brain storming and i really appreciate the efforts that you guys made to let us increase our wealth but seriously i have no control over my budgetory control as my expenses are being more than my income but i must follow these techniques whatever suggested.
Addhyan Milan ravel
August 8, 2020
thanks
abhishek
August 8, 2020
it was helpful…..thanks but the thing made me smile is authors description
Hera Shahab
August 8, 2020
Hi,
Too late for this mail, salary spent left with nothing.
Would definitely try utilizing this from next month.
Abhishek Ashiwani
August 11, 2020
Hahaha, only comment I could relate with
Sumant Santosh Sholapurkar
August 8, 2020
Hey. Use the ChintaMoney App to do the same 7 points automatically.
Aravind Nallajerla
August 8, 2020
I plan according to my checklist. For example, If I see gold is eventually grabbing down the path, I invest 40% of
my paycheck in gold. If I see, stocks are down then I invest in them. Actually, I follow a basic rule which
was quoted by Mr. Warren Buffet i.e., Spend the money whichever is left after saving. I first save how much is required
for my checklist in the future and then I spend whichever is left after saving. I save them in the form of investing,
because I believe leaving some amount of money aside is a liability. So, I invest.
Hope, this might help my friends out there.