Saving a penny from monthly income seems like a huge task when people juggle between debts to settle, emergencies, day-to-day expenses and more. However, if you have charted out a definitive plan and stay focussed, you can save a substantial amount of money every year. And having a money management calendar at your disposal will certainly help you stay focused and achieve your savings goals.
Read on for a monthly money management guide to get you started on managing your finances.
Let’s start with a resolution of financial well being and imbibe these few financial habits.
Save from your salary
Now that you have a monthly budget, you know where your money goes exactly. Try to adjust your expenses within the budget which should ideally have a gap between the expenses and the monthly income. Practising self-control between Need Vs Want can help this process. This way you can start saving money from your monthly income.
End of 1st Quarter and You’re Almost There!
The first quarter of the financial year ends here. If you have been strictly practising previous months’ money management tips, you have saved quite a bit. Maybe it’s time to start planning your taxes or build an emergency fund? We would strongly advise you to keep 15% – 20% of your salary aside for any kind of emergency.
Start planning for your taxes right away. Maybe, focus more on mutual funds? How about investing in tax-saving FDs or ELSS funds? If you’re still unsure, consult finance experts.
Review your insurance policy
Sincerely hope that the pandemic ends this year. However, pandemic or not, to protect yourself and your family at all times, make sure you have the right policy in place. See if your plan provides sufficient coverage and ticks off all your requirements.
More tax planning & saving that extra cash
Tax filing deadlines shouldn’t be too far unless the Indian Government decides to shift the date like last year due to the pandemic. Collect Form 16 from your employer, consult tax experts, and be ready. Simultaneously, keep saving from your salary and continue investing through SIPs (systematic investment plan).
Third Quarter Financial Planning Starts Here!
This is the time to think over your past financial decisions. If your past decisions have paid dividends, good. If not, tweak your plans. Review your investments and spending habits. Check your credit channels, review your OTT subscriptions, check monthly bills, etc. Also, remember, usually the income tax filing deadline is 31st July, so stay prepared.
Manage your credit channels wisely
Maintain your credit channels wisely. Being in debt is not bad, it helps you build a credit history. However, missing your EMI payments or defaulting on your loan can cost you a lot. So, be a responsible borrower as you’ve been and keep making timely repayments. Pro Tip – Pay your full credit card bills and don’t fall for the minimum balance payment trap.
Festivals Are Round The Corner. Spend Wisely
Ah, it’s that time of the year. Before you go on a shopping spree, just ensure that your investments are proper. Keep checking and reviewing your investment portfolio. Also, spend wisely. If you have an emergency fund, keep it as it is. Use other funds to shop for your family.
Install an application
In case you’re finding it difficult to keep a track of your expenses due to workload, there are apps to help you maintain your budget. Such money management apps help you track your expenses and warn you in case of any extra expenditure. Do a little research and install the application you need.
Diwali & The 50-30-20 Rule
Diwali’s here! Enjoy to the fullest but keep the 50-30-20 rule in your mind. This is the golden rule of money management. This rule helps people guide their expenses in a way that 50 percent of the income goes to needs, 30 percent to wants and 20 percent to savings.
If you have followed your month-wise money management tips, by now you might have saved just enough. If not, review where it went wrong. Have you made the right investment choice? Did you manage your debts well enough? Were there any unnecessary expenses? Upon reviewing, start planning for the next year.
Managing money requires practice and strong willpower to save money. Having a budget, investments and savings definitely help in the initial stages of money management. Money management is important for days of emergencies and settling loans.
Before you go…
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.