Guide To Manage Your Monthly Salary

Are you also one of those who strives every month end and wait for his salary. If so please read this guidelines to manage your monthly salary. Being a salary dependent most of us seems unsure or confused towards savings and investment amount.

Below Points to be considered to avoid such confusions.

1.Have a Plan (Budgeting) :- This is the most important and 1st step to be considered. To have a Plan before salary. Don't wait for the salary to get credited into your bank. Divide your expenses into 2 group. fixed expenses and variable expenses. and compare with your fixed monthly salary. This will help you to analyze expenses and this should be updated every 2 or 3 month.

Plan Long-term for Big Purchases—try to avoid making big purchases in the form of impulse buys. Try to weaken impact of the bigger expense, by saving for it over a few, preceding months.

Handling Bonus/Increments—try to control your urge to splurge. Try to think of your bonus as your big opportunity to set up an emergency fund for yourself but do use a bit for partying too to ensure you enjoy your money too.

1. Pay Your Self :- This is the basic of every human being to apprise your self cos what ever you will receive is your effort and you should get payed accordingly. Mostly people are confused how much would be the amount. As discussed with many scholars and proper research the amount should be more than 20% Of Net Salary. This amount should be utilize properly for your future Planning and Personal Expenditure.
2. Get Started with paying your bills :- Here Bills refers to Big Payments Like Installments/EMI/Daily Need Bills i.e Electricity/Water/Gas etc. Which will make your daily life smooth and easier. It is better to establish the ECS payment facility for the Payment of the Bills. including for your credit card, so that within hours of your salary getting credited, the bills get paid and you know exactly how much you are left with. The amount Should not be Max than 50% of net salary. It May varies as per your requirement and utilization. Always Try to have a proper observation on every any increase in amount.
3. Divert Fund Towards Tax Saving's For Emergency :- You need to ensure that you have some sort of insurance and basic, ongoing form of investment. This is applicable even if you are loaded with money. Insurance and tax-saving investments are smart money management tools that are recommended to every individual irrespective of his financial status. If you haven’t started yet, you can still buy into one-time payment insurance (both life and medical) and buy tax saving instruments like governments bonds or securities. The amount should be 20% of net salary. This will help to Protect and secure your future.
4. Create Piggy Bank Saving For Emergency :- It is always a good idea to Cheat Your self for saving a bit more than you desire. While insurance and investment are more like planned financial tools, you can create saving traps for yourself. For instance, use a piggy bank, necessarily not in the shape of a toy, at your desk or within your room. The idea is to make a self-rule and swear by it. For instance, any coinage in your pocket or every Five/Ten rupee note you have has to go in this savings contraption. This might sound like a childish idea but it really works. The amount should be 10% of net salary. This will add an extra security and help you for any unwanted emergency.