Increase Savings from Salary
Savings are very essential for every salaried person.In some countries like USA/UK government takes care of everything for the retired people.But in few countries like India it is not.The retiring people have to make their own planning for the life till death. This is a big job which needs proper planning,budgeting and monitoring expenditures.
Steps
- Write down your net monthly salary, say 'A'
- List out the monthly expenditures carefully.Be honest and realistic.1.Rent for accommodation/Society maintenance charges--------2.Maid Servant----------------------------------------------------------3.Medicines--------------------------------------------------------------4.Light Bill----------------------------------------------------------------5.Phone Bills-------------------------------------------------------------6.Milk Bill-----------------------------------------------------------------7.Groceries--------------------------------------------------------------8.Vegetables------------------------------------------------------------9.Fruits-------------------------------------------------------------------10.Transportation------------------------------------------------------11.Purchases (Unavoidable)-----------------------------------------12.Purchases (Avoidable)--------------------------------------------13.Loan Instalments--------------------------------------------------- i) Housing------------------------------------------------------------- ii) Car------------------------------------------------------------------ iii) Educational------------------------------------------------------- iv) L.I.C. Premiums-------------------------------------------------14.Miscellaneous------------------------------------------------------(Accommodation ,attending parties,picnics,sight seeing,movies,etc.) Total ='B' =
- Monthly Savings = 'A'-'B'
- Maintain records for about 3 months.Study carefully the records after 3 months.Unavoidable expenditures can not be cut, but avoidable expenditures can be reduced or fully cut.
- Do not take loans for purchasing luxurious items.Only in case of emergency you can go for loans.
- Restrict/control expenditure on accommodation ,entertainment, costly purchases
Tips
- Remember that money saved is money earned.
Warnings
- Don't compare your life with other's life.You manage with your income only.
