As soon as we get salaries, we start counting our month's expenses. If anything remains after the expiry of these expenses, then save it for the future. But it often happens that the entire salary ends in expenses and we can not save anything for the future. This is because we do not have proper salary management.

We keep expenses before and after saving, but financial planners have advised that if you really want to secure your future, you should first save and then think about spending.​

Wrong Formula: Savings = Income - Expenses 

Right Formula: Expenses = Income - Savings


Tips to manage expenses and savings:

1. Save 25% for Long Term

First of all, 25 percent of your salary should be invested in savings. This savings will give you long term benefits. If you are married and are have children then you will need fund for education of the children, their marriage etc. Even if you are not married, then you will face these expenses in future. In this case, this 25% savings will be your primarily duty. Also, if you are retired, you also have retirees, you must have fund for your financial support even after retirement. You can do this savings through FD, PF etc. If you want, you can also get help from a financial planner.


2. 5% for Emergency Fund

It does not come by saying trouble. Anyone in the life can suddenly need money. In such a situation, if you do not have any funding then it can be very difficult. Therefore, you should keep one part of the 5% savings aside for an emergency. It is also called a continent fund. Keep minimum 5 % of savings for this fund.


3. 40% for Living & Home Expenses 

Kitchen expenses, groceries, petrol expenditure, children's fees, mobile bills, home rent, internet bills etc. are included in household expenses. Keep 40 % of your salary for these expenses.


4. 20% for EMI, Insurance, Loan

If you have an insurance, EMI, home loan, personal loan, then separate 20% of your salary for that. If you not have any above said expenses then use that money for Learning somethin g(Joining Any Course, Buying Books,etc) & for Networking (Meeting Friends, Relatives).


5. 10% for Entertainment

Entertainment is a very important part because it makes us feel fresh.

Note: You can make your own Salary Management Plan. I am not a professional Financial Planner and this is a kind of breakup I and may people use, so thought of sharing with you all.




If you want to add more comments to the article or you see any thing incorrect please write a comment below and we will surely get back to you.



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