How to manage your salary?

Why People broke? They broke from the first month of salary not on the crises day, You never broke if you plan right with your money. A famous quote “Earning money is easy keeping is difficult”

I remember when I received my first salary, I took everything from the bank and started spending money. After so many years, I began to understand financial planning when expenses exceeded my salary. It is the general condition of the people around us. The reason for this is that we are trained to earn money but not to keep it. But now, in this financial crisis due to Covid 19, the situation is become worse, according to data published by mint 7.3 million Indians have a job on April 21 and according to the CMIE report, on May 21 the unemployment rate in India had peaked at 11.9 percent where it was 14.73 percent in urban India and remained at 10.63 percent in rural India. Than who is responsible Government?

Government is doing there part but maintaining our financial planning is our responsibility. Hear are some tips if you follow them from today ,you never be broke in your life.

10 Financial basics before getting your first salary

1) Budget planning in advance

In Hindu mythology it is said that we have to make room (Money planning) for Lord Laxmi (Goddess of wealth) to stay for a long time, so budgeting his salary / paycheck is the most important thing, spending on things essential. and not spend on unnecessary things.

For your spending also you must make a plan like food, entertainment, traveling, rent, electricity bill, etc. so that you don’t get surprised at the end of month

2) Tax planning

One of the most forgettable topics is tax planning, we ignore it at the beginning and pay huge taxes at the end, to avoid this we have to plan our tax, you can save 100% tax up to 12 Lac income check article.

Don’t forget to file an income tax return from the first year of your work, even if you didn’t fall under the tax slap, it will help you in getting a loan in the future. Check how you can save income tax upto 12 lakh of income.

3) Saving first than spending

Now, this is the thing 90% of people fail to do they spend and then but ever left they save.

But with this, they never save, because the right way to save is to fix an amount you want to save than the first thing you need to do after getting salary/ Paycheck is to shift the saving amount to your saving account from where you never take money unless its emergency.

4) Long term goal setting

Made a long term financial goals not small benefits, this concept will be taught the value of delayed gratification that is the act to resist the urge to take an immediate reward, hoping for getting the more valuable reward in the future.

The ability to delay gratification is essential to self-regulation, or self-control Spending minimum on Liability & more on assets

5) Take an Insurance plan

You need to take one good health insurance so that your saving will not disturb if any medical condition happens to you, As medical bills can drain your saving,

so it is a good investment for you and if you take it in the early stage then you got a minimum premium
Another you need to take one good term plan, this for the financial security for your dependent family members & how much do you need is a calculation approx. this amount should be as much interest amount of that will fulfill your dependent family daily needs
If you take these insurances at an early age you get a minimum premium

6) Make emergency fund

This is another important fund you need to have, As in a job or any business there is a lot of uncertainty, Nothing is permanent so if tomorrow suddenly we don’t get Salary/paycheck than for that emergency we need this emergency fund.

Now the question arises how much it should be, roughly it should be your daily expenses X 12 months. This fund never is touched unless you are not able to get a salary.

7) Invest in yourself

This is the biggest investment for yourself.

Investing yourself means you must always improve your skills, always learn something new, the best way to increase your income is to learn more through books, webinars/training courses.

8) Start investing

Start investing as early as possible, so that you get financially free, what is the meaning of financially free?

It means you got as much return from your investment that you need not depend on your current job/business, every month you get the amount that is enough for your daily expenses How much it depends upon your expenses
This is the power of compounding.

9) Target for passive income

Your one target should be getting passive income, It is the income that you you get without your efforts for example if you buy any residential/commercial property every month you get rent without your physical effort.

So our purpose should be making as much passive income source so that we are not dependent upon our current job/business.

10) Good debt & Bad debt

Debt is always not bad there is good debt also. Any loan you have taken buying assets is called good debt we have to take this debt for increasing our wealth like if we buy any property we use debt 7 than sell it on a higher rate to earn a profit this is good debt, Bad depth if we loan amount to buy liabilities like a car, vacation, household items, etc. this is called bad depth.

The famous quote is Don’t go broke trying to look rich. We need to avoid these debts as it drains our wealth.
These are the basic things everyone should know and apply in their life to be wealthy in their life.


These habits everyone should learn to be financially free

  1. Budget planning in advance.
  2. Tax planning
  3. Saving first than spending.
  4. Long term goal setting.
  5. Take Insurance plan.
  6. Make emergency fund.
  7. Invest on yourself.
  8. Start investing.
  9. Target for passive income.
  10. Good debt & Bad dept.

10 Personal Finance Books of all time

1) Rich Dad Poor Dad
2) The intelligent investor
3) Think and grow rich
4) The Richest man in Babylon
5) The Greatest salesman in the world
6) Parable of pipeline
7) Street Smart
8) The Magic of thinking Big
9) Why Didn’t They Teach Me This in School
10) Secret of millionaire mind


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