5 Most common money myths you need to avoid cover-min

5 Most Common Money Myths You Need to Avoid

AWhen you start earning, then a lot of people will tell you a ton of things to follow. Do you know why? Because when you are making more than people will be jealous of you and rather than being the motivation in your life, they will try to bring you down. But since they can’t hurt you in any way, they will create myths inside your head. These money myths are common and are happened to believe by a lot of people out there. Even the educated part of your society believes in it.

What are these money myths?

Well, these are common money myths which are needed to be avoided at any cost because they eat up your brain and does turn inside it. They are usually really harmless, but they come with a lot of misconception about earning. For instance, it does not harm you to believe in them, but them surely takes up a lot of time in your thoughts. For example, you might have heard your family members saying this and that when you are earning. And at some point in your life, you have believed in them. Well, these are just common, and they are random myths.

5 Common money myths to avoid right now

Here are the most common money myths you need to avoid right now.

Myth #1: You have to be rich to invest

Money myth - you have to be rich to invest

You want to make investment, but you have to be rich enough for them. You might laugh at this myth right now, but this is true, and a lot of people believes in it. And You don’t have to be costly for your investment. Investment can be done by a lot of people and especially if you want to have a secured future for yourself.

Finance is the part where you draw your own money, and there is always a risk to it. But you don’t have to be rich enough to do it. There are a number of investment options available which require very minimum monthly commitment like investing in ETFs, Mutual Funds, Index funds, direct equity investment etc. Moreover, Investment is the best way to grow your wealth. Believe it or not. We have seen people increase their wealth with the source of small systematic financing alone.

Myth #2: Savings cannot be done enough if you don’t earn enough

Money myth - savings cant be done if you do not earn enough

Savings are always a crucial part of your life. You don’t have to earn enough for that. If you want to save, then you can do it even if you are making 2k per month. It does not depend on what you make, but it solely depends on how much you are willing to think about your future.

Do you know that if you save at least 5% of your income in your bank, then it will amount to a lot more than what you can think of? Your savings are an integral part of your life, and you should never believe in this myth at all. If you save, then you are doing a favor for yourself and your family too.

If you are struggling with your budgeting, a simple rule that you can follow is 50/20/30 principle. According to 50/20/30 strategy, you should allocate 50% of your monthly income on ‘Needs’ (like rent, food etc), 20% of your monthly income on ‘Savings’ (like your retirement fund, investments etc) and the remaining 30% of your monthly income on your ‘Wants’ (like traveling, dining out etc). You can read more about 50/20/30 principle here.

Myth #3: You should leave your money management to hired experts

Money myth - you should leave your money management to hired experts

Don’t leave your money management on your financially educated partner or your family member or to a high priced financial advisor. If you are earning, then you should handle by on your own. It’s just a myth that you need to hire someone to manage your money. Always remember that whatever you are winning belongs to you and only you. And that’s why managing your own money efficiently is an important skill that everyone should learn.

For example, if you’re trading in equities or commodities from your earnings, always make sure to trade only that much money which does not affect your family even if you lose a bit. Similarly, if you’re actively involved in an online slot game, make sure to read everything possible about the game, have a strong strategy and a certain budget decided upon. This way you can manage your financials better without depending on anyone.

Myth #4: Investing in gold is always safe and better

Money myth invest in gold is safe and better

Always if you earn more, then you have to invest in gold. That is an absurd myth, and a lot of people believes and invests in gold. A large proportion of the Indian population considers Gold as one of the best options to invest in India. Here, gold is not only treated as a satisfactory long term wealth creator but also auspicious and a symbol of social status.

Anyways, Gold is a long term investment option and not suitable for earning short term gains. Moreover, the prices of Gold fluctuate in a cyclical manner. Therefore, one cannot expect Gold to perform well all the time. Overall, if you are seeking a regular source of income through your investments, Gold may never serve this purpose. However, if you want to hedge your existing investments in Equities and Bonds, you should consider investing in Gold.

Myth #5: Buying a home rather renting a place

Money myth buying a home rather than renting a place

You should hire a home, and you should not rent one is one of the most common myths which you will hear. A lot of people out there will explain this absurd point to you. Well, buying a home gives you better security, an area which is there for you and where you can count your name in.

But the decision of buying vs renting a home is not going to be the same for every individual. Whether you want to buy a house property or take it on rental, it totally depends on your financial situation. If buying accommodation suits my financial situation, it may not suit yours. Moreover, both the options are having their own perks and shortcomings.

Money myths are pervasive

Yes, myths regarding money are prevalent. Make sure that you are earning better and doing the best thing for yourself as well. If you are drawing and spending, then you are no useful than the rest of these people. You need to save your cash for future purpose, invest in options where you see that there is a built-in potential for you. Once you have found out your subject, it will be good enough for you.

And if you are afraid of spending cash a lot more to what you need, then you can opt-in for the credit card usage as well. Credit cards are right for you, and they help you to manage your budget and even stops you from overspending. Nonetheless, whatever be your situation, always try to avoid the money myths discussed in this article.

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15 Must Know Tax Saving Tips in India

If you are an Indian resident, you are required to pay tax on your income (if it crosses the minimum taxable limit) to the Indian Government. Do you ever feel like you are paying an excessive tax? Have you ever thought of saving some tax from your taxable income?

The Income Tax Act, 1961 is a complicated statute in itself. If you are looking to carry out your personal tax planning, you might it find it a real tough job to accomplish.

In this article, we shall talk about the various ways which you can adopt to save your taxes.

15 Must-Know Tax Saving Tips in India

Let us first talk about the tax deductions you can claim by investing in some financial instruments specified u/s 80C. The maximum tax benefit allowed under this section is Rs 1.5 lakh.

1. Public Provident Fund

Investment in PPF (Public Provident Fund) is subjected to EEE tax exemption status. It is a savings scheme established by the Government which comes with a maturity period of 15 years. You can invest in it by visiting any bank or post office in India. Currently, the rate of interest offered on PPF is 8% every year.

2. Employees’ Provident Fund

If you are a salaried individual, you can claim a tax deduction on the contributions you make in your EPF account. The maturity amount and the interest income on EPF have also been exempted from Income Tax provided you have completed 5 years of service.

3. Five-year tax-saver Fixed Deposits

You can invest in 5-year tax-saver FDs to claim a tax deduction in a Financial Year up to Rs 1.5 lakh. These instruments carry a fixed rate of interest varying from 7 to 8% p.a.

4. National Saving Certificate (NSC)

NSC is having a lock-in period of 5 years and offers interest at a fixed rate. At present, the interest rate is 8% p.a. You can get tax benefits on both investments made and interests received.

5. Equity Linked Saving Schemes (ELSS)

ELSS funds invest a minimum of 4/5th of their assets in Equities. They have a lock-in period of 3 years. If your long term capital gain exceeds Rs 1 lakh during redemption, then such gains are subjected to tax @10%.

6. Life Insurance Policies

You can claim a tax deduction for the premiums you pay for various types of life insurance policies which include endowment plan, term plan, and ULIP. But, for availing this tax benefit, the sum assured (insurance cover) must be a minimum of 10 times the amount of premium which you pay.

7. Interests on home loans

When you repay your home loan (procured for acquiring or constructing a house), the principal portion of the same is deductible under Income Tax. The interests that you pay are eligible for tax deduction u/s 24(b) of the said Act while computing income from house property.

8. Senior Citizen Saving Schemes (SCSS)

The contributions made to an SCSS are eligible for a tax deduction. SCSS is having a tenure of 5 years. It is available for investments for those who are above 60 years. The rate of return offered by an SCSS is currently 8.7% per annum which is higher than a bank FD.

(Image credits: Paisabazaar)

Apart from section 80C, there are various other sections in the Income Tax Act of India which provides you with tax benefits.

9. National Pension Scheme (NPS)

Whatever contribution you make in your NPS account, you are eligible to obtain tax benefit up to Rs 1.5 lakh under section 80C. An additional tax deduction to the maximum of Rs 50k u/s 80CCD(1B) is available on your contributions in your NPS account. Investing in NPS lets you invest in both equities and debts at the same time and build a significant retirement corpus.

Also read:

10. Medical Insurance Premiums

You can avail tax deduction up to Rs 25k on medical insurance premiums paid u/s 80D. This tax benefit is allowed to you and your family. For senior citizens, this limit changes to Rs 50k. Again, if you are paying health insurance premiums for yourself and/or your family and senior citizen parents, the maximum combined deduction available is Rs 75k in a Financial Year.

11. House Rent Allowance (HRA)

If you are a salaried employee getting House Rent Allowance (HRA), you can enjoy tax exemption on the same if you stay in a rented house. But, if you don’t get HRA from your job but staying in rented accommodation, you can still claim tax deduction u/s 80GG to the maximum of Rs 60,000 p.a.

12. Home loan for constructing a house property

If you have raised a home loan for acquiring or constructing a house property, the interest payable on the same is tax deductible u/s 24 up to a limit of Rs 2 lakh per year. But, the interesting thing is that, instead of a self-occupied property, if you have given the house on rent, there is no upper limit for it. But, the total loss that you can claim on the head of income from house property is limited to Rs 2 lakh.

13. Partial benefits on Saving Account Interests

The interests that you receive on your Savings Bank Account are tax-free to a limit of Rs 10,000 per year u/s 80TTA. But, if you are a senior citizen, the tax deduction on interests received on both FD and savings account is allowed up to Rs 50,000 u/s 80TTB.

15. Disabled Assessee Deductions

If you are an Assessee suffering from any disability, you can claim tax deduction u/s 80U for yourself. Under this section, the maximum deduction from your taxable income allowed is Rs 1, 25,000.

15. Disabled dependent deductions

You can enjoy tax benefit u/s 80DD if there is any disabled person in your family who is dependent on you for his/her living. This section allows you to claim a deduction of Rs 1.25 lakhs from your taxable income.

Bonus: Donation or relief funds

If you make a donation to any relief fund or charitable institution, the limit of the tax deduction is 50% of your donated amount. Some entities allow 100% tax benefits on the donations made, subject to a maximum of 10% of the adjusted total income. There are some organizations where 100% of your donations are allowed as tax deductions without any conditions.

Closing Thoughts

In this article, we have provided you with some tax-saving tips. If you could follow our guidance, it would help you to plan your personal taxes better. The Income Tax Law of India is itself a huge one. Further, many amendments come every year in the form of a new budget (Finance Act), circulars, notifications, and case laws.

Therefore, we would like to warn you that you should not rely only on our stated tax-saving strategies. For managing your tax compliances in the most effective manner, it is recommended that you consult any tax consultant like a Lawyer or a practicing Chartered Accountant.

We wish you all the best for your personal tax planning.

Minimalist lifestyle Is it worth being a minimalist cover

Minimalist lifestyle: Is it worth being a minimalist?

Being a minimalist is all about living with less and in recent years it’s become somewhat of a trend with shows such as Tidying up with Marie Condo and the Minimalism documentary (both on Netflix) taking the internet by storm. They say that minimalist lifestyle can change your life for the better and living with less equals more time to focus on the important things in life such as growing your personal relationships. But who is a minimalist and is it really worth being one?

Minimalist lifestyle: Is this for you?

While the word minimalism, these days, is synonymous with the clutter-free way people live their lives, it was traditionally a word used to describe art and design (such as the decorating your home with a minimalist concept). However, this word has become so much more today as we use it to define a certain lifestyle- less is more.

The idea behind this concept is that in today’s digital age we are often overwhelmed with materialistic things such as our iPhones and laptops. We forget to spend time with our loved ones and enjoy the simple things in life like cooking or creating art. Minimalism serves as an answer to these problems.

Minimalism is intentional living and involves getting rid of anything that takes up unnecessary space in your life like unwanted clothing, household items, bills, and fees. While living a clutter-free life sounds like a good idea, it may not be for everyone. Here are a few pros and cons to help you decide if the minimalist life is for you.

The PROS

Minimalism lets you focus on what matters the most and take out what you don’t need. Here are a few reasons why you should consider this lifestyle.

It helps you find the things you really need

Let’s be honest, you could honestly survive without a lot of things currently sitting in your house. The first step to being a minimalist is picking an area or room in your house and clean it out. You will find a bunch of things you no longer use or didn’t even know you owned.

Take this opportunity to either donate or sell these things. Not only does this leave you with the things that are important to you but you can also make a quick buck on the side. The rule of thumb is to take an item and see if you’ve used it in the last 90 days if the answer is no, will you use it in the next the 90 days? If the answer is still no, you no longer need it.

Having fewer things makes it easier to budget

When you know exactly what you have, it is easier to budget and make decisions. One of the main reasons many people find it hard to forecast expenses and prepare financially for the future is because they have too many unnecessary expenses to think about. This includes bills to apps like Hulu or Netflix or unwanted subscriptions. While these may not seem like too much money at first they can add up over time.

A few ways to overcome these unnecessary minor expenses is by having just one card to pay all your bills. You can even get a card with a good rewards program to rack up those points. This way you have all your major expenses on one statement which makes it easier to budget for the upcoming year.

Another option is to have a single checking account and a single emergency fund. This way you can maintain the minimal balance for the account and have a better idea of your daily expenses. An emergency fund is particularly useful during a period of a cash crunch. Getting your finances in order is a crucial element in living a stress-free and clutter-free life.

Also read: How Much Should You Save  - 50/20/30 Rule!

You create room for the important things in life

Having too many things can create a sense of claustrophobia which often leads down a road of anxiety and unhappiness. So when we clear out unwanted items, it leaves more room for what truly brings happiness to our lives. Physical things tend to tie us down like an anchor and living a minimalist life can take that weight off your shoulders- freedom from greed and debt.

Happiness is subjective and can mean different things to each one of us. For some, it could mean spending time with your family, your puppy or even doing something you are passionate about. Many people find that living a minimalist life will get them closer to this goal.

The CONS

While living a minimalist life looks interesting, it is often easier said than done. Minimalism isn’t a personal project and tends to affect those around you as well. Here are a few cons of living a minimalist life.

The minimalist lifestyle is difficult to adopt

Living clutter-free sounds like paradise but many people find it incredibly challenging to trade in their material possessions for a more minimalist life. In today’s digital age, with new trends popping up on the internet every day, there is a lot of peer pressure to keep up with the latest styles. Living without material possessions (shoes, clothes and electronics) can seem unthinkable for many.

The process of de-cluttering your life is stressful and overwhelming and going through all your things can bring up a lot of memories (some good, some not so good). Moreover, minimalism has a different meaning for everyone so it can be hard to decide how much minimalism is right for you.

(Video Credits: Matt D’Avella)

Minimalism is not a one-stop solution to all your problems

Greed and debt are two evils that people want liberation from and many people see leading a minimalist lifestyle as the answer to all their problems. But this is not the case because if you wake up one day and decide to go cold-turkey and lead a completely minimalist life, you are more than likely to relapse and go right back to your old habits.

It is important to see minimalism as a gradual process rather than a quick fix to all your problems.

Also read: 7 Fun And Easy Tips to Save More Money

So, should you become a minimalist?

Well, that’s a question only you can answer. Leading a clutter-free life is a great feeling but it is not for everybody. Some people often find happiness amongst their chaos.

Choosing to live a minimal life depends on your mindset and what you hope to get out of it. If you do decide to become a minimalist, remember to take it one day at a time.

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7 Fun And Easy Tips to Save More Money

We all want to save money and build a comfortable financial cushion to plan for our future.  Many of us have milestones we want to reach like buying a house, a car, paying off debt or going on vacation. But although we may have good intentions, many of us don’t save money until much later in our lives because our current wants and needs seem much more important.

The trick to having enough money for a comfortable financial future is to start saving money as soon as you enter the workforce. Saving is not as overwhelming as it sounds and with a little prioritization and self-discipline, you can make it a life habit. Here are a few tips to help you get started:

7 fun and easy tips to save more money

1. Tackle your bigger debts

The first step to start saving money is to tackle your bigger debts, specifically the high-interest ones from any loans or credit cards you have taken out. This is because the fees on the loans add up quickly and can take up a significant portion of your income. Also once your debts are paid off, saving money in other areas of your life becomes much easier.

However, tackling the bigger debts can be intimidating so another effective way is to use the snowball method. This is when you start by paying off the small debts before you pay the larger ones. This method does not focus on the numbers in debt repayment but on behavior modification. When you pay the larger debts first, you will not see the numbers go down significantly and this can demotivate you. But paying off smaller debts is easier and you see the progress quickly which encourages you to stick it out until you’re debt free!

2. Cut down any unnecessary bills

When people budget out their expenses, they find many unnecessary leaks in their income. A major expense bracket is your grocery and entertainment bills.

For groceries, a great way to save money is by planning out your meals each week and taking account of what you have and what you need to buy. This will stop you from overspending on food and reducing any wastage. Managing your grocery expenses also reduces the money spent on restaurant meals as you can eat more home-cooked meals.

Brewing your own coffee at home is also very beneficial. Studies show that the average American spends $2,600 on Starbucks coffee every year which is a considerable amount of money to spend on coffee!

starbucks

3. Reduce household expenses

In addition to food and entertainment, there are many ways you can reduce your household expenses as well. A quick way is to have an eye on the thermostat in your home, lowering the temperature by 10 degrees Fahrenheit can reduce energy costs by 3-5%. Other ways to reduce energy costs includes taking shorter showers, washing your clothes in cold water or switching to LED bulbs that have a lower energy consumption.

With OTT platforms such as Amazon Prime and Netflix, many people no longer find the need for cable television. Although your cable bill may not seem like much, it adds up over the course of the year. Cutting ties with cable and switching to streaming services can help you reduce your expenses in the long run.

Another expense you can reduce is your phone bill. You can either opt for a family plan to lower your overall costs or minimize your data plan by using apps such as WhatsApp, Skype or Facetime to make phone calls.

4. Use a zero-sum budget

Saving enough money always comes down to a well-structured budget. If your goal is to save money aggressively, a good method to utilize is the zero-sum budget.

The goal of this budget is to make your income minus the cash outflow equals zero. This is done by allocating every single dollar you make to a certain category. So for instance, you could allocate money to food, entertainment, bills, savings and paying off debt. A survey conducted showed that people were able to save 19% more of their income with this method.

Also read:

5. Automate your savings

A fool-proof way to save money is to automate your savings. When you ensure that a portion of your income goes into a savings account, you will be living on less money without even realizing it.

Creating a budget is easy but sticking to it is the challenging part. By automating your savings, you no longer have to worry about not meeting your budget goals. It is a good idea to have a separate checking and savings account or an emergency fund where the money from your income can be transferred every month.

automating expenses

(Image credits: Forbes)

6. Get a side hustle

In addition to cutting your costs, another great way to save more money is to diversify your income. You can do this by getting a side-hustle.

A side hustle is a part-time job or a passion project which provides an extra source of income. Many people do side-hustles as a hobby and use it as an outlet to express their creativity while earning an extra income. Very often, bloggers and Instagrammers turn their side-hustle into their full-time jobs if they find it to be a lucrative career. A few great side-hustle ideas include writing, coding or teaching a class.

Also read: 11 Best Passive Ways to Make Money While You Sleep.

7. Take a ‘staycation’

A staycation is an inexpensive alternative to an actual vacation and can be just as fun! While it is a trendy term used in social media, the reasoning behind it is pretty rational. If you are looking to have fun while saving some money, you can find some fun activities to do in the area you live in instead of dropping money on expensive airline tickets.

A staycation includes everything you would do on an actual vacation like taking time off work to relax and unwind and spending time with family and friends.

Closing Thoughts

Saving money can be intimidating at first but with a little perseverance and discipline, it can become a life habit. Each person has different goals when it comes to saving and it is up to you to decide where you can cut costs to make the most of your income.

While saving is important don’t forget to indulge in experiences once in a while because at the end of the day it is the experiences that you will remember not the materialistic comforts.

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Emergency fund: Why and How to build one?

Growing up, we’re often told to save for a rainy day. As kids, many of us didn’t heed this advice, choosing instead, to spend our money on the next best toy or video game. However, it is only when we grow older that we realize the importance of the values our parents instilled in us.

Learning how to save money from a young age is known to have numerous benefits. For one, it teaches you the value of money and motivates you to work towards your goal of buying a new book or a video game you really want. While kids put their money into a piggy bank for a rainy day, adults use the same principle to save their money in a bank account known as an Emergency Fund.

What is an Emergency Fund?

As the name suggests, an emergency fund is money that you put aside for emergencies. It is the money that you can reach out to during your hour of need and pay for those unforeseen and unexpected expenses such loss of a primary job (the main source of income), medical emergency, personal emergencies or even a car breakdown. You need to have a solid financial plan for the future and an emergency fund is an essential tool in helping you do just that.

Many people often find it hard to grasp the concept of saving for an unexpected circumstance as it is much easier to live in the movement and spend money on the things you love- money buys happiness, right? But an emergency fund can help you in darkest hour and statistics provide the proof. According to a report by the Federal Reserve on Economic Wellbeing in the U.S. Households in 2015 showed that when faced with an emergency of $400, 47% of Americans had a hard time coming up with the money without using their credit card or borrowing from family and friends. This shocking statistic is reason enough to start working on that emergency fund immediately.

The financial experts recommend that before you start making investments for your long-term goals, first you should build an emergency fund which should be greater than at least three times your monthly expenses. In other words, even if you lose your primary source of income, you should be able to survive at least three months through your emergency fund. For example, if your monthly expense is equal to $2,500, then you should have at least $7,500 in your emergency fund. It would be even better if you can build an emergency fund to cover six months of your expenses as it will reduce the need to draw from high-interest debt options, such as credit cards.

Moreover, this fund should be highly liquid i.e. readily accessible in case of emergency situation. A few good options to build your emergency fund is via savings account or money market funds. Additionally, avoid investing your emergency fund in instruments with lock-in periods or those which are subjected to penalties in case of early withdrawal.

How to build an emergency fund?

By now you understand why an emergency fund is so important and want to create one for yourself. Building an emergency fund is incredibly easy and only requires some discipline and resilience on your part.

So how do we do this? Like with all other things in life we need to start small. Here are a few ways to help you get started:

1. Big things have small beginnings

Saving is key to having a financially secure future and have an emergency fund is an important part of this. Saving a large amount of money for an expense that may or may not happen in the future is a hard thing to do. So take baby steps with your fund and start with saving small amounts of money. This could even be as low as $30-$50 dollars a month as long as you are actively putting away money for the future. Although you start out small, you need to have a goal as to how much money you would ultimately want to have in your emergency fund. Setting a fixed goal makes it easier to work towards it.

2. You don’t need all that coffee

Many people live paycheck to paycheck and often find it hard to put away money for the future. If you find yourself in such a situation, you need to look at your existing expenses and try to cut back on what is unnecessary. You can start by accounting for your expenses every day and putting them into different buckets. This can help you identify areas that you spend too much money on like all that expensive coffee or those frequent restaurant meals. If you are really trying to build that rainy day fun, try cooking all your meals at home for at least 5 days a week.

3. Automate it!

To successfully build an emergency fund you need to control your expenses and put away a certain amount of your paycheck every month. While this is easier said than done, one way to make the process simpler is by having an automatic transfer of a fixed amount from your bank account every month. This serves two purposes, one, the amount in your bank account will be lower meaning that your expenses will be in control and two, you won’t even have to think twice about putting away money since the process is now automated!

4. Get creative with saving

As you begin to get more serious about building your emergency fund, you can find new and creative ways to save money. When you begin to assess your income and spending, you may find some unnecessary leaks in your income. This could be canceling subscriptions that you no longer use for magazines or apps. These payments are automatically charged to your debit or credit card and can add up quickly. Additionally, with over the top (OTT) platforms like Netflix and Amazon Prime, the trend has shifted to online entertainment, making cable TV obsolete. So take a good look at your cable channel list and try to cut channels that you no longer watch or need. While these costs may not seem as much, they can amount to a lot of savings over time.

Alternatively, look for ways to increase your income stream. You can get a freelance job or have a side hustle like babysitting or dog-walking.

Also read:

5. Celebrate your accomplishments

While the goal of an emergency fund is to save money for a rainy day, it is also important to reward yourself once in a while. This doesn’t have to be a big splurge, it could even be a meal at your favorite restaurant or a new book. Rewarding yourself will motivate you to keep going and achieve all your saving goals!

An emergency fund can help you when you have a financial setback and is an essential tool for financial success. In addition to saving money, you will have the added advantage of earning a high-interest rate on the money. Once you’ve built up a system of saving money every month, you are well on your way to building that emergency fund but most importantly make sure to use your money wisely!

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How Much Should You Save  - 50/20/30 Rule!

How much should you save — This is one of the biggest questions that comes to everyone’s mind when we talk about budgeting. The importance of smart budgeting cannot be overstated as excessive spending and irregular saving habits can lead to disasters in the future.

If you want to enjoy a healthy financial life, it’s really important to have a balance between your savings and your expenses. And budgeting for individuals helps to align the spendings with savings and figuring out how much to spend on what.

If you are also struggling with personal finance, then this post may be a holy grail for you. In this post, we are going to discuss one of the easiest budgeting strategies to figure out how much should you save. And it is called the 50/20/30 Strategy.

50/20/30 Strategy

This strategy can be extremely helpful for youngsters who are just entering the world of personal finance and don’t know how to manage their spendings. Originally developed by Elizabeth Warren and Amelia Warren Tyagi, this strategy is beautifully described in their book — All Your Worth: The Ultimate Lifetime Money Plan.

50/20/30 is a really simple and straightforward budgeting strategy that can help you to define how much should you spend on your essential spendings (needs), savings and finally on your preferences (wants and choices). According to 50/20/30 strategy, you should allocate:

  • 50% of your monthly income on ‘Needs’ (like rent, food etc)
  • 20% of your monthly income on ‘Savings’ (like your retirement fund, investments etc)
  • And the remaining 30% of your monthly income on your ‘Wants’ (like traveling, dining out etc)

how much should you save 50/20/30 budgeting

(Image Credits: Business Today)

Now, let us understand all these three spending allocations in details.

50% of your income on Needs

As soon as you get your in-hand salary (i.e. your monthly income after deducting taxes), set aside around 50% of this income to pay for the things that are essential in your day-to-day life. The expenses in this category can be spendings on rent, food, transportation, utilities, health care, basic groceries, insurances etc.

Although allocating half of your monthly income in ‘needs’ may seem massive. However, when you look at the items in this list, it makes sense to allocate around 50% of your income on your needs.

Anyways, in case you are not able to manage your needs within 50% of your monthly income, you may have to optimize your lifestyle. For example, instead of living in a fancy house in a fancy locality which is too far from your workspace and adds transportation costs, you may wanna move in an affordable house with walkable distance to your office.

20% of your income on Savings

Once all your essentials are paid, next you need to allocate the 20% of your monthly income on savings. This category includes repayment of debt like a student loan, credit card debt etc along with investing the remaining for your future goals and retirement.

It’s really important that you allocate 20% of your income in this category before moving on to the next one i.e. spending on your ‘Wants’.

30% of your income on Wants/Personal choices

This is the last category in your personal budgeting. Once you are done with your essentials and savings, the final spendings should be on the things that you want. The expenses in this category include spendings on shopping, traveling, entertainment, dining out etc.

This list may also cover a few vague expenses like Netflix subscription, membership to clubs, weekend trips etc depending on your lifestyle. However, make sure that your spendings do not cross the allocated budget of 30% of your monthly income.

Example:

Let’s say that you make Rs 1.5 lakhs per month (in-hand income after paying taxes). As soon as you get your salary, you need to allocate

  • Rs 75k in meeting your day-to-day essentials like rent, food etc.
  • Rs 30k in paying your debts and savings.
  • And the remaining Rs 45k on your personal choice like dining out, traveling, memberships etc.

Using this simple budgeting strategy, you won’t run out of money to meet your daily needs, continuously contribute towards your future and retirement savings, and can also spend guilt-freely on your personal choices.

Also read: 3 Amazing Books to Read for a Successful Investing Mindset.

A few other popular saving strategies:

Apart from the 50/20/30 strategy, here are two other popular strategies that can also help you to figure out how much should you save.

  • 10% rule: This rule says that you should save at least 10% of your monthly earnings, no matter what the circumstances. This strategy is brilliantly explained in the book — The Richest Man in Babylon and works well for the people who are struggling to save money. The basic ideology behind this strategy is to ‘Pay yourself first’ and keep 10% of your savings only to yourself.
  • 100 minus your age rule: This rule tells that you should save at least the percentage of your earnings which is equal to 100 minus your age. For example, if you are 28 years old right now, then you should save (and invest) at least 100–28 = 72% of your monthly income. This rule is based on the principle that the expenses increase as you grow older (like kids, dependents etc) and hence you should save and invest more when you are young.

Also read:

Closing Thoughts:

Although 50/20/30 budgeting strategy may seem a little difficult in the beginning, however, with discipline and persistence — it is followable. Moreover, this budgeting strategy doesn’t depend on how much you earn. Even people with moderate to low salary range can follow this strategy if they are ready to optimize their lifestyle a little.

Anyways, the last thing that I would like to add is that do not take the rule too-damn seriously. I mean, do not freak out if your essential spending crosses over 50% in a month. Sometimes, you may need to review your income and expenses and make adjustments in the budgeting strategy.

For example, if you believe that your needs are less — let’s say you already own a house and hence you don’t need to pay any rent, but your personal desires are more, then you can follow the 40/20/40 strategy {40% spending on needs, 20% spending on savings and 40% spending on wants/personal choices}.

On the other hand, if your essential expenditures are high — let’s say you pay a heavy monthly rent, but your personal wants are low, then you may prefer 60/20/20 strategy {60% spending on needs, 20% spending on savings and 20% spending on wants/personal choices}. Nonetheless, whatever strategy you prefer, try to allocate at least 20% of your monthly income in savings. Remember- ‘A Penny Saved is a Penny Earned’.

how to retire early

Want to Retire Early? Now You Can!

Retire early, get financial freedom and travel the world!- It’s the common cubicle dream. But there are in fact many ways a person can make this a reality. Joining the FIRE movement which stands for ‘financially independent, retire early’ is not that hard provided you make the right financial moves while working a 9-5 job. FIRE has defined early retirement as not just leaving work but as gaining the financial freedom to pursue your passion projects and follow your dreams.

Retiring early, however, takes a lot of work and therefore many people find it challenging to achieve this. Contrary to popular belief, you don’t need to work in a certain high-salaried job or industry to retire early, anyone who has the long-term goal of retiring early can make it happen. With strong resolve and the right strategies, you can turn your dream into a reality. The key steps to early retirement are discussed below:

Track your expenses and make the necessary changes to your budget:

One of the most important things to do in order to meet all your financial goals, be it early retirement or buying a new home, is to analyze your current spending.

No matter how you look at it, you need to make changes to your current spending in order to achieve your dream of retiring early. This could even mean drastically reducing your spending. There are a slew of apps today that can help you track your expenses such as LearnVest or Penny. Most people with the goal of retiring early, aim to spend less than 50% of their income and put the rest into savings.

There are many ways you can work towards increasing your savings. If you are in debt, work towards aggressively paying off the loans so that any income you make in the future can be put directly towards savings. In addition to this, you can also cut back on unnecessary expenses such as that excessive coffee or those frequent restaurant dinners. You can also try and increase your income through side gigs or freelancing opportunities. If your goal is to retire early, frugal living should be your motto.

Also check: 10 best Android budget apps for money management

Make your money work for you:

In other words, invest aggressively! The longer the amount of time, you allow your money to grow, the greater the rewards. Hence, it only makes sense that you start investing at the start of your career. Early retirement essentially means that you have a shorter amount of time to save money but a longer amount of time that the money has to last you so make investment your best friend.

Design your portfolio in a way that will generate long-term returns. While stocks can be a risky investment, in the long-term they produce very high returns. If you look at the historic analysis of the Indian stock market, taking into consideration its various downturns, the market barometer NIFTY 50 has averaged a little higher than 10.84% annually since inception. This means if you put a majority of your savings into an index fund, there is a good chance you’ll receive an annual return of 10.5%.

Many people assume you should look for low-risk investments options when investing for the retirement fund. But this is an inaccurate assumption. Investing in low-cost investment funds is recommended when you are near the retirement age, as you need to move some of your money into more liquid investments so that you don’t have to worry about the investments selling options when you need it.

Calculate how much money you need for retirement:

Planning for the future is the most important strategy when it comes to retirement. That is you need to estimate what your retirement spending will look like. To do this, you should analyze your current spending and look at what expenses will go up, down, added, subtracted or eliminated completely.

A few things to consider are your health insurance and rent. Many companies offer health insurance as part of the employment package, but for retirement, you need to make sure to factor in this expense. Another large expense is your monthly rent. If you hope to own a home before retirement, this should not be a problem but if you plan to rent, you need to make sure to include this in your retirement expense.

Also read: 6 Reasons Why You Should Get Health Insurance

financial freedom

Start saving as early as possible:

The earlier you start saving money, the more you would have accumulated when you decide to retire. Hence, if you start putting money away from the start of your career, there is a higher chance you can exit the workforce earlier. There is a rule of 25 that states that you need to have 25 times your planned annual spending when you retire. That is if you plan to spend $35,000 during the first year of retirement, you need to have a total of $875,000 when you retire.

The second rule of saving is the 4% rule which states that you can take out 4% of your invested savings during your first year of retirement and continue to draw out that same amount adjusted for inflation for the following years. This strategy was developed in the 1990s and was based on historical market conditions.

While neither of these strategies is fool-proof, they are considered reasonable when it comes to saving. Moreover, it is imperative to remain conservative with your savings when it comes to retirement.

Conclusion

The FIRE (financially independent, retire early) dream may seem a distant reality for many but with a little planning and smart financial moves, it can become a reality. But it also helps to rethink what early retirement means, it’s not always fancy cruises and dinners. For some, it could mean spending more time with your grandchildren or significant others.

Whatever it may be, as long as it is important to you to live by your own schedule and not that of the employers, you should diligently work towards getting out of the workforce early using the strategies listed above. Remember to start saving early because running out of money means running back to work.

Ways to Save for Your Retirement

3 Simple Steps to Save for Your Retirement.

3 Simple Steps to Save for Your Retirement:

What you earn, i.e. your income is centered, mostly, when it comes to “how much you actually need when you get retired”.  But, are you really sure that the math used here is all correct? I am not.

Suppose if you draw a hefty sum from where you work (monthly) but barely manage to save a dime out of it; would you retire rich? I guess not.

On the other hand, if you get to save even a 30% (roughly) of whatever that you earn in a month, you’d definitely be at a much better place than the former you, right? So, the math here needs to be shifted to “savings and expenditure” and not on the overall income.

You’d be surprised to know that still many are sticking to the former notions of 70% of the income but yes, there are loopholes:

  1. You wouldn’t want to get through an entirely miserable young age just to retire rich, would you? – That, sometimes, becomes the case when you try to save 70% of your income.
  2. You are certainly not including the notion of current taxes and increasing health expenses as and when you grow up.

Strategically, therefore, the 70% rule is a decorated bubble. The question is how much do you actually need in order to retire rich? Let’s answer this question carefully in this article.

3 Simple Steps to Save for Your Retirement:

1. When Should You Start Saving?

The best answer to this question would be: “as soon as possible”. You are 21, well and good! 31? It is still not too late to start. You can always jump start your emergency funds whenever you want to. However, being consistent is the only key.

The best part about starting early is the “power of compound interest” even on low proportions of monthly savings. You can save as less as 5000 INR a month and see a huge difference years later.

However, if you are in your 30s or 40s, don’t worry; cutting back on a couple of things would work well for you to get you a feasible retirement fund. As we mentioned, the power of compound interest on your savings, you need to take your picks on where you should invest your money.

Fixed Deposits, Mutual Funds, or SIP? Different people have different priorities based on their own risk-taking capabilities. Choose your own option!

Also read: What are Assets and Liabilities? A simple explanation.

2. Ask for a Raise:

If you are confused what does it have to do with your retirement savings fund, wait up? We have an answer for you: The net sum of income you earn in your first decade of working makes much more impact on your net total of emergency or retirement fund.

Asking for a raise would balance out the money going directly from your bank account to your savings account. In the best scenarios, you could use the raised amount to go into your retirement fund (fully or partially) which would act as an extra cash for you in future.

Research says that about 37% of the employees who get a significant raise annually are those who ask for it. So, the next time, don’t wait up until the annual records of employees are checked but ask for the raise whenever you feel necessary.

When should you ask for a raise?

Honestly, there’s no strict rule for the same. But if you are asking for the possible options then it could be one of those times whenever you have successfully completed a project or have brought a fruitful result for the business you are working for.

3. Does Fixed Deposit always Work?

According to traditional sayings, you should focus more on keeping your savings in a fixed deposit. These days, it is quite controversial to choose where to put all your stakes on?

The greatest advantage that a fixed deposit offers is that it can be unsealed quite easily in case of an emergency. When you choose any other option to put your money into savings, you don’t actually get this leverage. Moreover, you might have to pay an extra unnecessary sum in order to unseal your deposit in case of emergency. True.

However, the rate of interest provided on a fixed deposit is very, very low. In fact, it is incomparable to other means such as mutual funds. Viewing the other side of the coin, mutual funds investments can be quite risky. They are subject to the market risks and what not.

Also read: Where Should You Invest Your Money?

What is the best way to invest then?

Now, the correct way is to break your proportions into pieces and put them into different means such as fixed deposits, stocks, mutual funds, real estate etc. There is no compulsion or a set of predefined rules to govern the context of retirement savings.

The magic lies in the way how you balance your savings and lifestyle.

5 Things You Should Know Before Getting Your First Credit Card

5 Things You Should Know Before Getting Your First Credit Card.

5 Things You Should Know Before Getting Your First Credit Card:

Contrary to popular beliefs, the credit cards are not to be mistaken with “free cash” or else be ready to fall into the trap of endless repayment and paying penalties.

A Credit Card, if used rationally and in a balanced way, can be a huge gift for mediocre spenders as it allows you to spend on your necessities even if you are practically broke. However, be sure that you will be able to earn cash to repay the amount in time or else there will be penalties in your name. Looking for benefits associated with credit cards? Let’s help you out with a few scenarios:

1. Benefits Associated With Credit Cards:

  1. If you are not earning (or will not be earning) for a while, you can always pay your bills and pay for your necessities using a credit card assured if you can pay for the amount later.
  2. There are multiple rewards and cash backs that come with the use of credit cards on bill payments and even for shopping.
  3. Various credit card issuers provide you with insurance on your flight tickets and bus tickets.
  4. With a good credit history, you can apply for loans easily in any bank.
  5. Convenience is the middle name of a credit card as it allows you to pay for anything through a card and without requiring you to withdraw cash from ATM every now and then.

But with benefits, there come responsibilities and in this case the wisdom of rational spending. Let’s know things about credit cards to know more about it.

2. Credit Card Interest Rates in India

The interest rate varies from bank to bank in India. However, ICICI Bank is the leading issuer of credit cards in India. The interest rate keeps falling in the range of 1-3% for almost every bank that issues credit cards. Apart from the interest rate, there are other benefits associated with credit cards which have to be kept in mind before purchasing a credit card. For example:

Some banks offer free insurance on ticket bookings through credit card and others provide various cash backs on bill payments. These are a few factors that influence the mind of a buyer. The interest rate depends on the following factors:

  • Repo Rate: Repo rate is the rate at which the RBI lends money to the commercial banks of India.
  • Reverse Repo Rate: The rate at which the RBI borrows money from the commercial banks of India.
  • Repo rate directly influences the interest rate on credit cards whereas the reverse repo rate inversely influences the rate of interest.
  • Prime Lending Rate: Various banks fix the interest rate on a credit card keeping in mind the current prime lending rate.

3. Fees on Credit Cards:

There are times when a credit card issuer (bank) does not clear the terms and conditions for a credit card. The terms and conditions specify various fees that are to be charged before issuing a credit card to the holder. The fee structure is as follows:

  1. Joining Fees: These days, many credit card issuers are issuing credit cards without associating any joining fee to it which means that a holder can gain access to a credit card without having to pay any fee in the beginning.
  2. Annual fees: The free (or paid) credit cards issued are associated with an annual fee which has to be paid on a per year basis. Again, the annual fee to be paid varies from one bank to the other.
  3. Interest Rate: The main pointer through which a bank earns on credit cards is the interest rate that it charges on these cards. Generally, the interest rates vary from 1-3% in India.

4. Minimum Payment on Credit Cards:

In layman terms, the Minimum Payment is a scheme which allows you to settle a minimum amount on your overall (monthly) credit card bill if you are not able to pay the entire bill at once. However, the remaining balance which is carried forward for the next month is associated with a higher rate of interest.

Benefits: 

  • Save you from a penalty in case of “partial payment”.
  • Saves a bad mark on your credit history.

Disadvantages:

  • Interest-free credit period is not provided in case of Minimum Payment
  • Keeps you trapped in an endless loop of repayment.

Note: If you are yet to get a credit card, here is a quick link to check your eligibility and apply for the best credit card online.

5. How Credit Cards Affect Your Credit Score?

The credit card can hugely determine your credit score as it defines your immediate decisions and management of your debt. If you plan to balance out your spending every month, credit cards can have a huge positive impact on your credit score.

  • Your Credit Mix accounts for 10% of your FICO score
  • Closing Credit Card Accounts can hurt your credit score
  • Your Payment history (or late repayment) can hurt your credit score up to 30%
  • The amount of debt you carry can affect 30% of your FICO score.

Also read: How to Check Your Credit Score?

best ways to save money

#3 Best Ways To Save Money- That 90% People Are Not Using.

#3 Best Ways To Save Money:

Monetary freedom, isn’t the whole world revolving around it? Generally, you, I, and others have this notion in our minds that in order to retire rich, you need to earn millions. Earning a decent remuneration is definitely certain but is this the whole picture? I am afraid not.

Where does the trick lie? – Well, the trick lies in the power of saving.

We personally know a ton of those people who have earned below par for their entire lives but have managed to retire rich. If you are diligent enough to know how this works for people with a median wage, you need to rely on the power of religious savings.

Moreover, you also need to know how to put a full stop to reckless spending in order to save money. With the title, the picture gets a little clearer but we have barely scratched the surface yet.

The best ways to save money is by cutting back on the big stuff. However, cutting on big kinds of stuff doesn’t even remotely point to living in misery. No, it doesn’t! Then what does it mean in its true form? Let us all know in this article.

1. Maintain a Ritual:

Consistency always works out. For your monthly expenses, you need to maintain a ritual to save your income. You might perhaps save 100 bucks a month by choosing a cheaper alternative to your monthly errands but if you do it consistently, you will definitely see a positive change in your savings account.

  • Revise of Dish/Cable plans and switch to a cheaper monthly plan.
  • Cancel unnecessary monthly subscriptions.
  • Remove your saved credit card details from your most used online stores.
  • Cut down on your food expenses by cooking meals yourself instead of ordering them online.

Such rituals individually wouldn’t reflect a significant amount but collectively such rituals manage to save a heck load of money.

Also read: The Best Ever Solution to Save Money for Salaried Employees

2. Validate your needs:

Not validating your needs is one of the major causes of reckless spending. You’re smart enough to back up your own choices to shop.

You know, there aren’t going to be enough clothes, gadgets, footwear, and what not in your wardrobe no matter what the number of such stuff you purchase.

Us humans being rational thinkers have this capability to justify each of our purchases. We can start this by asking these questions whenever we pick something up from a shelf:

  • Do I really need this?
  • What was the last time when I made the same purchases?
  • What purpose am I purchasing this for?

Validating your needs make sense whenever you are going to put a significant amount of money on a commodity. If you really need it, you can purchase it by all means. However, if there is no specific need for the same, you can always use the saved money to something significant and crucial – say, your rent.

Also read: What are Assets and Liabilities? A simple explanation.

3. Optimize your “big expenditure”:

It is quite clear that 1. Housing and 2. Transportation is the two most “fund-eating” necessities we have to pay for every month.

No matter how big you are earning, you’d have to pay for rent and transportation costs unless you are of course living in your own house. If your savings are actually taking a toll on you, you need to reconsider your choices.

All you have to do is to carefully monitor better options. If you can, switch your high rented apartment and move into a cheaper one. However, saving money shouldn’t be corresponded to living out in misery. On the other hand, for transportation, switch to the means of public transport.

Walking more often to run regular errands also helps not only in saving your income but also helps in maintaining your body shape.

BONUS (For students and recent graduates): 

4. Consolidate your Student Loan:

Putting all your eggs in one basket is never considered a better option.

However, when it comes to something like education, one doesn’t think twice about doing so. We must tell you that opting for an education loan is a commitment for a longer duration. If you have a student loan on your head, we have a couple of life-saving tricks – one of which is to consolidate your student loan.

Statistics say that it takes anything from 15 to 20 years on an average for a student to repay his/her loan. 

Consolidation means to merge multiple loans into one single frame which makes sense to save interest amount. There are various consolidation options available all over the internet to explore. Private Federal Consolidation options still prevail in the market which sometimes is quite beneficial as well.

We know how it sometimes gets difficult to cut down on your regular expenses but you must realize that there is always more than one way to get through with things. This holds true for the financial sector as well.

We wish you all the good luck saving!

Also read: #11 Best Passive Ways to Make Money While You Sleep.

Tags: 3 ways to save money, save money, how to save money, ways to save, how to save money each month

100 minus your age rule- best asset allocation nethod

The Easiest Asset Allocation Method- 100 Minus Your Age Rule

The easiest asset allocation method- 100 minus your age rule:

It’s always difficult to decide how much you should save and how much you should invest. The answer varies on the different stages of life. The investing strategy of a 22-year-old need not to be same as that of a 60-year old.

But, how much you should actually invest in different assets at the particular stage of your life?

There is no single answer to this question and there can be multiple correct answers.

However, it this post I’m going to suggest you one of the easiest asset allocation method, known as the 100 minus your age rule.

Also read: The Best Ever Solution to Save Money for Salaried Employees

100 minus your age rule:

This rule is quite old and is based on the basic principle of investing which says that you should reduce the risks as you get older.

The logic is simple. When you are old, you will have lot more responsibilities and expenses compared to when you’re young. For example, if you’re at 58, you might be worrying about the retirement fund, retirement home, higher education of your kids, marriage of your daughter/son etc.

On the contrary, when you are young, you do not have much expenses or responsibility. That’s why it is said to take more risks when you are young.

100 minus your age rule is based on the same principle of minimizing risks as you grow old and simplifies the asset allocation depending on the stage of your life.

Also read: 

How ‘100 minus your age’ rule works?

100 minus your age rule states that the percentage(%) of allocation of your wealth in equity (stocks or mutual funds) should be equal to the 100 minus your age.

The rest amount should be allocated in safe funds like savings, fixed deposits, bonds etc.

For example, if your age is 45,

Then, your percentage allocation in equity = (100- 45) = 55% of your net worth
Percentage allocation in safe funds= 45% of net worth

asset allocation

You can notice here that as you approach an age of 100, the risks are totally zero.

Moreover, please do not argue what about those whose age is above 100. Do you really think that they will be in a position to make investment decisions at that age?

The drawback of using ‘100 minus your age rule’:

Although this ‘100 minus your age rule’ make quite a sense for the asset allocation, however, there are few drawbacks of using this rule.

For example, from the last few decades, the life expectancy of the people are increasing. This means that you can stay invested in the equity (and take more risks) for few more years now.

Further, at any time, the asset allocation by an individual depends on the person’s financial situation. For example, if you have a large family with dependants on you, then you might not be willing to take many risks, even if you’re young. The ‘100 minus your age rule’ doesn’t takes care of the financial situations of the people.

Conclusion:

100 minus your age is a simple, yet effective way to easily allocate assets depending on the particular stage of your life.

However, while deciding the asset allocation, you should also keep in mind your priorities and financial situation.

Also read: How to Invest in Share Market? A Beginner’s guide

That’s all. I hope it post is useful to the readers. Happy Investing.

The Best Ever Solution to Save Money for Salaried Employees

The Best Ever Solution to Save Money for Salaried Employees

The Best Ever Solution to Save Money for Salaried Employees:

Not having enough savings in the bank account is one of the biggest problems that majority of people are facing in India. Especially the youth.

Living on pay-check to pay-check and relying on the credit cards to pay even for the basic amenities of life is a common scenario nowadays.

But how can we solve this problem? How can a salaried employee save enough money to buy his dream car or dream house, without being a cheapskate or without cutting money on coffees?

The answer is simple. I’ve been implementing this solution for a long time since the pocket money’s in my college days to the paycheck that I get from my first job.

And the solution to save money for salaried employees is:

“Pay your self first.”

Now, this is not a new concept and in no way, I want to take credit for sharing this notion. I read this concept for the first time in the book ‘THE RICHEST MAN IN BABYLON’ by George Clason. Then I found the same concept of saving money in Robert Kiyosaki’s book ‘RICH DAD, POOR DAD’.

If you haven’t read the book ‘The Richest Man in Babylon‘, I highly recommend you to read this book. It is one of the best classic personal finance book that I have ever read.

The idea is simple.

Keep a fixed part of your salary for yourself. Say you keep 3/10 or 30% of your salary for yourself only.

You are not giving this to your landlord, or to the automobile company for your bike/car EMI, or to Dominos to eat a pizza or to anyone else. You keep this money only to yourself.

Nonetheless, you can spend the rest 70% of your salary in any way that you want.

I am not asking to not to go to a party or to eat in the cheap restaurants or not to renew your Gym membership. Enjoy your life. Saving few bucks by not drinking a cup of tea/coffee won’t make you a millionaire.

Just do not party with your 30% share of income that you kept for yourself. You have earned this money after a lot of hard work and you deserve to pay yourself first.

Keep this money with you only. It’s not your liberty, it’s your right.

Quick note: Saving money is just the beginning. If you want to become a millionaire, you have to start investing in the right way. Nevertheless, how to invest is a topic to discuss in another post. In this post, I just want to focus only on the first step to get rich. And this can be done by saving money. You can’t invest if you do not saved first.

save money

(Please do not be this guy ;p)

That’s all. I hope this solution to save money for salaried employees is helpful and you can also start saving from today.

If you liked this idea, please share this post with at least one of friend who needs to learn the concept of paying yourself first 😉

Also read: 10 Must Read Books For Stock Market Investors.

Tags: How to save money for salaried employees, how to save money from salary every month, how to save money for salaried employees with small salary