Do you find yourself struggling to stretch your salary to the end of the month? Living from pay cheque to pay cheque can't be much fun. But often it's not the money we earn but rather how we handle it that makes all the difference. Here are 10 ways to manage your monthly salary more effectively.
Check your salary statement.
The first thing you should do when your salary is credited into your account is go through your salary statement. Check all amounts ie basic salary, travel allowance, medical allowance and other reimbursements to see if you have got your dues. In case of any incorrect amounts, notify your HR/finance department immediately about the discrepancy. This way you can ensure the arrears are credited with your next month's salary.
Pay off all your bills.
Activate an Electronic Clearing Service (ECS) facility for the payment of your credit card, phone, electricity and other bills so that they are paid on time every month. This will help you to avoid late payment fees which can eat into your savings. If ECS is not the way you want to go, write out your cheques at the start of the month and simply add amounts when the bills are generated.
Plan your tax-saving strategy.
Often people find themselves facing a cash crunch at the year-end thanks to bad financial planning the whole year through. You could opt for a tax-saving scheme that allows for monthly payment or simply save a certain amount each month for a lump sum investment at the year end. You could even put this amount in a recurring deposit or a liquid plus fund to earn some money on it.
Save that bonus!
If you received a bonus around Diwali time, we hope you didn't just splurge. You can spend a little of your yearly bonus (say 20 per cent). The rest should be saved. You never know when you might want to go on a spontaneous vacation or just throw a fancy cocktail party for your friends.
Budget for the month.
List out your standard monthly expenses like groceries, building outgoings, tuition fees, car fuel etc and make a rough budget for each of them. Don't forget to include amounts that go towards savings, investments and of course, your contingency fund. This way you know how much money is left at your disposal.
Save and invest.
Salaries ensure a regular flow of income which makes Systematic Investment Plans (SIPs) a great investment avenue. In about five years, you will reap rich dividends. Liquid plus funds make for great short-term avenues.
Give to charity.
Some of the richest people in the world make it a point to give a part of their earnings to charity. Now we're not saying give with the motive of receiving, but be generous. Donate to charity, give to beggars (food or money) and you won't find yourself crying poverty every month. It's the law of sowing and reaping!
(Source: idiva.com)
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