“Kitchen mein mummy ne paise chupa ke rakhe hain.” Since most of us belong to the middle class, we have heard this line at least once. But the question is whether that saved money did any good in improving personal finances. For example, if you have taken a personal loan in Gurgaon, then your goal is the repayment of that loan.
Ramesh, a Noida-based warehouse worker, earns a monthly salary of Rs. 20,000. Vishwas, a vegetable vendor, can earn an average income of Rs. 35,000/month. Sunita, a housekeeper for a rich business owner household, makes anywhere between Rs. 25,000 and Rs. 30,000.
On the other hand, Sarita, a peon in a private school, can make just Rs. 8,000/month. Now, even though there is a huge income gap between all the recipients, each one of them can sustain themselves and their families. Sustaining a family on just Rs. 8,000/month sounds surprising, right?
It’s indeed surprising. But what we need to realise is that with certain personal finance strategies, even this goal can be achieved. Websites like the Economic Times and Times of India are overflowing with tips and tricks to improve your finances. However, those blogs are quite boring to read. So, let’s make it more fun for you.
Read this blog, and you can spot yourself smiling while reading each headline.
Are Karna Kya Chahte Ho?
When any contestant comes on the hot seat of ‘Kaun Banega Crorepati,’ the Big-B can’t resist asking 1 question. Do you know what’s in that question? The question is, “Kya Karenge Aap Itni Dhan Raashi Ka?”
If you want to sort out your finances, then you need to ask yourself the same question. You need to think and jot down your financial goals for the year, next year, and for the next 5 years. This exercise alone will help you realise how much you need to save and how much you can afford to spend on basic necessities.
Pi-Pi Ka Hisab Dena Padega
What was the last purchase you made? What was the exact amount of your last transaction? If you don’t know the answer to these questions, then this is lesson No. 1. You can pick up a pen and paper and start writing, ‘What Not To Do.’
To improve your finances, you must keep track of all your transactions. For example, if you are buying a Rs. 5 Parle-G biscuit pack, this should be on your list. Do you know why? If you spend Rs. 5 daily on the same biscuit, then why not use a combo pack and save 50-60 rupees?
Aap Banoge India ke Finance Minister
You don’t have to learn complex financial jargon to manage your personal finances. All you have to do is allocate a certain limit to every expense. For example, you can keep a limit of Rs. 5,000/month on food takeouts.
You need to put yourself in the shoes of a finance minister and treat your salary as the budget. After reserving some amount as the emergency fund, you can then divide the remaining amount based on your needs and wants.
Jo M Bolta Hu, Vo M Karta Hu
The last step is to stick to your goals. We know it’s easier said than done. However, if you make it a habit to live below your means, then after a couple of months, eventually the expenses will come down.
Conclusion
In short, you need to follow just 4 steps to manage your personal finances. The journey starts with identifying your goal, making a budget, tracking your spending habits, and sticking to the budget. And that was it. That’s your guide to sorting out your finances, irrespective of your income level.
