5 Ways to Spend Your Monthly Income Wisely

We work the entire month… day and night… just to see your bank account brimming with your salary.

And when it is finally credited, poof! It’s gone already

No, a genie did not take them away. You did.

You and your careless unnecessary spending habits.

And if you don’t take care of it now, this habit will get you into a lot of trouble. But don’t worry, I am not going to let that happen to you.

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Check out these 5 best and easiest ways how you can spend your monthly income wisely and save a lot of tears (pun intended).

1. Make a Budget

The main reason you are not able to save your monthly income is that you don’t have a budget prepared in your mind. Making a budget is the first thing you should do even before receiving your salary. It helps you to tame down a lot of your expenses by prioritizing them.

You can make a budget in your notepad or even take the help of any budgetary app available online.

The 50%-(needs)-30%(wants)-20%(savings) rule can also come in handy if you are not able to choose anything.

So, start with making a budget and you will notice the difference in your spending habits right away

2. Set Financial Goals

Do you know, only most people across the globe are financially illiterate? This makes it pretty obvious why almost all of us fail at financial planning.

Financial learning and setting financial goals are extremely important if you really want to plan out your short-term and long-term goals. But if you are completely new at this, don’t panic. Take it slow. Enroll in a few courses, or take help from experts like https://www.finnacle.com.au/.

Now when you are confident about your financial literacy, sit down and plan – you will realize how precise goal-setting can help you maintain your cash flow.

3. Minimize Unnecessary Expenses

Tell me how many times you needed money for buying something important but didn’t have enough. I am sure, A LOT… This is because you have been spending more-than-required money on unproductive things.

Sure, there are some things you want for your day-to-day living like electricity, groceries, rent, etc. But you can always find ways to cut down these expenses too.

An easier way to get rid of this bad habit is, take a pen and a paper and list out all the places you are spending your money on. Then go through each step one by one and filter all the expenses that are not required.

Train your mindset to fight off the temptation of impulse buying. It’s hard but it’s not impossible. Slowly but steadily, you will get there.

4. Start Investing

You will never understand the power of investing unless you do it. But instead of spending vigorously without knowing where it goes, create a framework of your financial goal.

Find out what investment plans are trending in the market right now and whether they are matching with your financial goals or not? They can be equity, mutual funds, SIP, or even debt funds.

Once you decide that, don’t forget to keep some liquidated funds (cash) in hand for your non-negotiable expenses for the month.

5. Treat Yourself, Wisely

I know after formulating all these plans, the first thought that will come to your mind is “no unnecessary expenses from today onwards”. But wait, hear me out. As much as it is admirable of you to take it seriously, going harsh on your lifestyle is not what I recommend.

Because then you won’t enjoy saving your money, even if it is for something good.

So, trust the process and reward yourself with little something whenever you reach one of your financial goals.

Celebrate by going on a date or short trip maybe, you deserve it.

This will keep you disciplined and gratified, all at once!

Over to You…

We all want to be financially free, as soon as we secure a job or start making money on our own. But soon after that, you will realize that earning money was only the first step, managing money the real deal.

If you take care of all the pointers mentioned in the above list, you’re sure to achieve your financial goals sooner than expected.

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